Why do Chinese companies find it more attractive to invest in Africa than Western companies? 30

I am in South Africa with a foreign company.

As far as I know, under the framework of the South African Economic Community, especially textiles, imports and exports have a bonded policy and can enjoy most-favored-nation treatment.

1.The United States has an AGOA policy, which is the most favored nation treatment for textile duty-free deductibles.

2.Geographical location. As a result, the shipping cost and time are faster than in China. There is no doubt about that.

3.Locale. And you know, the status of blacks, in some way, is higher than that of Chinese. Obama is an example of how black people will help black people. The black people who work in the West are definitely taller than the Chinese.

4.Africa is rich in minerals.

I can also reveal a little bit to you. Black Africans are very unfriendly to the Chinese. 1 yellow person is afraid to walk on the street.

Or even 3 yellow people. will be robbed, or kidnapped. And a white man, or even a woman, can travel through the streets with a North Face on his back.

They don't think the Chinese are helping them. It's about achieving something. Moreover, Chinese investment in Africa depends on the treatment of their country by developed countries, so they are grateful to white people. Complete.

The West means that these more developed countries, the more developed countries have high investment registered capital, many legal provisions, and developed countries have a lot of business experience, have a complete set of theories and excellent students graduated from colleges and universities, and the competition is too great.

And what about African countries, needless to say, they are very backward, they are broad-ranging, people warmly welcome you to build their homeland, and China-Africa relations are good, and there is no discrimination.

1.Not many people invest in Africa.

2.Africa has many and vast resources.

I have been to Angola, Africa, there are Chinese there, there are also big business, there are many people who do small business, one depends on how much capital you have? Decide what kind of business you can do, how big it is, it is best to do cosmetics that are commonly used by people, laundry detergent production, soap, shampoo, women's perfume, etc., if you have strong funds, then go straight to the mine!

African countries are vigorously developing their economies, so Africa's development prospects are very good. But to invest in Africa, you first have to identify the following questions: first, you have to choose one of the African countries as the initial starting point; second, to identify specific areas of investment in African countries; Third, if you are going to invest in agriculture in an African country, you must first understand the market demand for agricultural products, after all, it must be profitable.

It is also necessary to have a specific understanding of land lease**, labor costs, farm tools, agricultural machinery, and agricultural materials** in each country. Fourth, if you are planning to do business, you should first understand the market demand of African countries, import tariffs, etc.; Fifth, at present, the African continent is already flooded with a large number of Chinese goods, and how to choose the right commodities also needs to be considered. It is recommended that you pay attention to some domestic introductions to Africa**, and make preparations before investing.

In addition, before going to Africa, a series of local customs, legal employment issues, land policies, taxes and a series of issues must be figured out, and investing there requires a long-term preparation process, He Shurong, deputy dean of the China-Africa International Business School of Zhejiang Normal University, reminded entrepreneurs who want to go to Africa for development. He Shurong also said: For the advice on investment direction, it depends on different industries, what do you do?

To make a judgment according to your situation, the characteristics of various places in Africa are different, for example, North Africa has a majority of Arab culture, South Africa has a complete manufacturing industry, West Africa and East Africa are different, some countries are mainly minerals, but the country next door may be dominated by agricultural products, if you want to invest, you need to know where your advantages are, and where are the advantages of the local area?

The main reason is that Africa's development is relatively backward and the labor cost is relatively low, which can save a lot of upfront investment for enterprises, which is more cost-effective than the high human investment in other countries.

Because there are very few factories in Africa, there are not too many companies to settle in, and the labor in Africa is particularly cheap, so many investors like to invest in Africa.

In fact, it is because Africa has a particularly large population, and the land price and prices there are relatively low, so you can get higher profits there.

It may be because Africa is still relatively backward, so there is more room for development and more money to invest.

Gong Wu, executive director of the China Society for African Studies.

Select a partner.

The African market is full of uncertainties and complex business relationships, so the choice of investment partners is particularly important.

The selection of joint venture partners includes cross-cultural communication, cross-cultural management, and understanding and awareness of international**, international cooperation, international regulations, and local practices. Based on my analysis of the success or failure of Chinese enterprises' investment in Africa, I believe that the following points can be considered as joint venture partners for enterprises:

1.Familiarity with local laws and regulations and careful selection of lawyers First of all, you should be familiar with local laws and regulations, and clarify the objects of legal protection and judicial procedures; Secondly, choose a local reputable lawyer, register the business independently, and then choose a partner to discuss the way of cooperation. This is because many countries treat the protection of local independently registered enterprises differently from the protection of the rights and interests of joint ventures and foreign-funded enterprises, and they tend to prefer to protect local enterprises.

Therefore, the role of the lawyer is quite important, and it is important to pay attention to the promise that the other party will not accept the registration of the company. The relevant procedures can be done by seeking the help of the local economic and commercial counsellor's office of the Chinese People's Republic of China, as well as consulting with other Chinese-funded enterprises.

Clarify the cooperative relationship, carefully choose the joint venture method, and try to be sole proprietorship. After the enterprise has determined the investment intention, it should carefully choose the cooperation method. Chinese enterprises should learn lessons and clarify the relationship between the parties to clarify the relationship of interests.

If it is possible and feasible for Chinese companies to invest independently, they should strive to cooperate with Western companies and avoid cooperation with local companies as much as possible, in the case of a balance of interests. On the other hand, the sole proprietorship method is more conducive to the completion of the application and approval process for Chinese enterprises, and greatly simplifies the series of procedures caused by the qualification audit of both parties to the joint venture. In addition, an objective and prudent approach to the audit results of the joint venture party is preferable.

2.Take long-term relationships as the basis for cooperation, and avoid rushing to invest The understanding of partners should be based on relatively long-term contact and understanding between the two parties. It is best to have a certain understanding of the other party's business credit and personal credit, and establish the joint venture cooperation on the basis of the existing cooperation between the two parties.

For the project you like, do not rush to invest, should grasp the progress of the negotiation in the obligations and responsibilities of both parties, and do not rush to seek cooperation and make rash decisions.

3.Prudently avoid transaction risks, based on the principle of simplicity, safety and operability Investment should have an expectation of returns, and the expectation is based on investment risks, so China should correctly assess the risks that enterprises can bear when choosing partners. In the Central African economy**, transaction risk is particularly important.

In international cooperation projects, low-risk methods should be chosen for the goods and capital transactions between the two partners. Objectively, due to the constraints of institutional development in African countries, for example, the procedures for cashing traveler's cheques from many African countries to China are quite complicated. Most countries have strict controls on foreign exchange payments; In addition, China does not accept letters of credit from some countries. In principle, businesses should conduct transactions in a simple and secure manner.

Even enterprises with extremely rich experience in international and financial business should not be careless.