The world's next great manufacturing center: how Chinese investment is reshaping Africa

The world's next great manufacturing center: how Chinese investment is reshaping Africa

Author: 
Sun, Irene Yuan
Publisher: 
Harvard Business School Press
Date published: 
2017
Record type: 
Region: 
Journal Title: 
Harvard Business Review
Source: 
Harvard Business Review, Vol. 95, No. 3, May-June 2017, pp. 122-130
Abstract: 

Rising costs in China have prompted Chinese manufacturing entrepreneurs to look to Africa for higher-margin investments. It is possible that Africa might become the next big worldwide manufacturing center, supplanting China itself. This industrial revolution in Africa could create 100 million jobs, a fresh group of internationally competitive manufacturing firms, and the eradication of extreme poverty. Chinese firms overwhelmingly hire locals, giving them experience that will enable them to become managers and executives in turn. Economic theory demonstrates that the path to higher living standards is productivity, rather than services. And manufacturing investment produces large multiplier effects, creating 1.6 service jobs for each manufacturing job.

Language: 
Country focus: 

CITATION: Sun, Irene Yuan. The world's next great manufacturing center: how Chinese investment is reshaping Africa . : Harvard Business School Press , 2017. Harvard Business Review, Vol. 95, No. 3, May-June 2017, pp. 122-130 - Available at: http://library.au.int/worlds-next-great-manufacturing-center-how-chinese-investment-reshaping-africa