Chinese International Contractors in Africa: Market Potentiality and Entry Opportunity

Abstract

In recent years, Chinese international contractors (CICs) have been expanding their presence in the African market rapidly with the support of the Chinese government. Previously focused in traditional friendship countries such as Angola, Ethiopia, Sudan and Zambia, the CICs have rapidly established an increasing market presence in many African countries and become competitors to other overseas contractors. Taking the Nigerian market as a case study, this paper analyses the market share between CICs and contractors from other countries, the construction projects demand in African countries, the financing sources and the policies regulating the projects financing. Data used in this study are from multiple sources including literature review, statistical reports, regulations, policies and a case study of Nigeria. These findings should provide a valuable reference to evaluate the opportunities in the African market as well as to assist the decision making process for CICs who are interested in developing business in Africa.