Opinion

In Africa for mutual growth

By Ma Chao (China Daily)
Updated: 2010-05-08 11:40

Chinese firms venturing into Nigeria should learn to deal with trade unions, NGOs and the media. If Chinese companies want to succeed in Nigeria, they should enter the manufacturing and infrastructure sectors, instead of getting into trade. With Nigeria's market for imported products almost full, the good old days of Chinese merchants earning stacks of money by exporting goods to Nigeria are history.

Now, the companies that make large profits are the ones that invest in factories and build roads. "In recent years, most of the Chinese businesspeople who only traded in goods in Nigeria failed, whereas all those who invested in industries succeeded", says Hu Jieguo, an ethnic Chinese tycoon, settled in Nigeria since 1978.

Besides, Chinese enterprises should realize that localization is the key to success in Nigeria. Companies that are the most localized are usually the most successful. For instance, China Civil Engineering Construction Corporation (CCECC), which entered the Nigerian market in the 1980s, now employs more than 10,000 Nigerians and close to 1,000 Chinese. It has undertaken 56 projects, spread across the country, for a combined value of more than $10 billion. Chinese firms have to maintain their products' quality, too. The image of Chinese products has been tarnished by some unscrupulous manufacturers eager to make quick money through their substandard or hazardous products.

From government officials and intellectuals to ordinary people, almost every Nigerian I talked with was unhappy with the quality of Chinese products. Chinese companies have to improve the quality of their products and remember not to treat Nigeria, or any part of African for that matter, as a market for low-end, low-quality goods. This is where localization comes in, for it will help them meet the specific needs of the consumers.

The Nigerian government and politicians are keen to see more Chinese firms invest in Nigeria. Compared with their Western counterparts, Chinese companies are more sincere in developing together with Africa. They usually make great efforts to train local staff and transfer technology to their partners.

"In half a century, Nigeria has barely acquired any technology in its dealings with the West. But the Chinese are ready to transfer theirs. That's why we began looking East for opportunities", says Ibrahim Mantu, senator and former deputy president of Nigeria's senate.

The economic development of China and Nigeria both has been on the fast track. If the two economies are linked more closely, they could share the economic drive, stimulate each other and develop together. That would be more than a win-win scenario and set a good example of South-South cooperation.

machao@chinadaily.net.cn