Sun. Jan 26th, 2020

iAfrica

Stay Smart About South Africa

An Increase in Chinese Private Investment in Africa

While some of China’s more traditional tech companies, particularly those involved in fintech and handsets, won in 2019, this year promises a more dynamic array of Chinese private investment in Africa. Fueling this investment is China’s “Starboard” or “Science and Technology Board”, China’s six-month old NASDAQ-style stock exchange. Africa’s top mobile phone seller, Transsion, raised $400 million in its multibillion dollar IPO in September. The Shenzhen-based company is the poster child for how a Chinese company could build the majority of its value around African consumers or business customers even though it has next to no market back home in China. Artificial intelligence-driven facial and speech recognition companies are also promising to dive into Africa’s tech sector this decade. Much of the AI-driven tech found in Africa to date was sold from (semi) private Chinese tech companies to African governments, for example Zimbabwe’s deal with Cloudwalk. 

SOURCE: QUARTZ AFRICA