How are Chinese investments impacting African startups?
Africa and China have a rather loud relationship that cannot be ignored regardless of one’s alignment. The Chinese authorities have encouraged their people to go out and explore and make a name for the country wherever they are. In business, technology and geopolitics, China cannot be ignored, especially when dealing with Africa.
Chinese investments outside China have been skyrocketing since the 2000s. Record trade numbers have been achieved over the years.
Chinese outward direct investment (ODI) reached US$146.5 billion in 2022.
Chinese direct investment in Africa was US$5 billion in 2021 but dropped to US$1.8 billion in 2022
Future Hub, Meituan and 3W Capital are among a host of Chinese and China-backed venture capitals investing in African startups.
Wapi Pay, Carry1st, Opay, and PalmPay are some of the startups in Africa backed by Chinese investment.
So our question is, what are African startups getting from the deep relationship between African countries and China?
Find out the answers in the full story.