Chinese machinery companies enter the African market in bulk

Chinese machinery companies enter the African market in bulk The 5th BRICS Summit was held in South Africa on March 26th. At the meeting, in order to meet the rapid growth of the African continent and the huge demand for infrastructure funds, the BRICS countries reached a multi-year plan for co-financing infrastructure in Africa. 》 According to statistics, except for South Africa, the trade volume between the BRICS countries and Africa exceeded 250 billion U.S. dollars, which is 12 times more than a decade ago. In recent years, the cooperation between the BRICS countries and Africa has been fully carried out.

From June 1st to 3rd, the 5th African Development Conference will be held in Yokohama. The Japanese government has successively exposed various non-aid programs: Japan plans to provide non-developed oil, natural gas and mineral resources to Japanese companies in the next five years. A total of 200 billion yen in funds will increase the amount of infrastructure exports from the current 10 trillion yen to 30 trillion yen in 2020.

Obviously, the vast space for infrastructure development in Africa has attracted worldwide attention, and the most direct beneficiaries of countries intending to set foot in infrastructure in Africa are undoubtedly those with strong engineering contractors. In the case of China, which has the longest history of relations with Africa, from 2000 to 2011, China assisted 51 African countries with 1673 projects, totaling approximately 75 billion U.S. dollars in aid. Today, Africa has become China's second-largest contract engineering market. Nigeria and Angola in Africa are the two countries with the largest number of foreign contracted projects in China.

At the same time, construction equipment manufacturers also ushered in a large number of opportunities. It is understood that China’s engineering contractors often choose to purchase equipment in the country and bring it to the construction site. For example, only the East Africa Company of Hunan Construction Engineering Group in 2012 led the export of Zoomlion and other engineering machinery to 140 million yuan. The contracting of Chinese companies in Africa has also paved the way for Chinese construction machinery products to enter the African market quickly and in bulk.

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