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Revenue to skyrocket at Chinese firms in Africa

By Jing Shuiyu | chinadaily.com.cn | Updated: 2017-06-30 21:31

Chinese firms in Africa are set to see their revenues reach $440 billion in 2025 by foraying into new sectors, up nearly 140 percent from the current level, according to a report by global consulting firm McKinsey & Co on Friday.

As stated in the report, the five new sectors will cover agriculture, banking and insurance, housing, information communications technology and telecommunications, and transport and logistics.

Across trade, investment, infrastructure, financing and aid, China will be among the top four partners to Africa, the report stated.

In the first quarter this year, a representative of China's General Administration of Customs said the Sino-African trade volume surged 16.8 percent year-on-year to $38.8 billion - the first quarterly rise since 2015.

According to the report, between 2001 and 2005, the annual rate of trade growth stood at 21 percent, and China's direct investment to Africa increased at an annual growth rate of 40 percent from 2004 to 2015.

The Ministry of Commerce said, while attending a recent press conference,favorable results would potentially herald an era of high-level cooperation between China and African economies this year.

The McKinsey team interviewed 1,000 Chinese-led companies in Africa, which spanned across eight countries, making up about two-thirds of the Sub-Saharan Africa's GDP.

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