Chinese Tech Companies Hungry for Expansion Business into Africa Market
Chinese companies' influence on the continent has diversified from early forays and now includes broadcasting networks, data centers and smartphone sales.
McKinsey's report pointed to Chinese broadcaster StarTimes, which has employed a strategy of going in cheap and expanding later.
The company employs and trains locals while growing its viewership, and invests in both local and international programming. It has found particular success in Tanzania, the report said.
StarTimes' "focus on the local market has taken television viewing from an occasional luxury to a daily routine for many Tanzanians," according to McKinsey, thereby capturing Africa's growing middle class.
China's formalized One Belt, One Road infrastructure projects were also spurring mainland interest in the continent.
Tecno, a smartphone maker under Hong Kong parent company Transsion Holdings, has embodied Chinese companies' winning formula on the continent.
Handsets from the Tecno, which has a regional base in Nigeria, have practical innovations geared toward African markets.
These included a long battery life as reliable power sources can be difficult to come by, screens resistant to dust particles and cameras specifically adapted for darker skin tones. On top of this local understanding is a market-friendly price: Handsets typically cost between $50-$100.
Tecno has grown fast, and according to Transsion Holdings' website, its collective brands in Africa have a more than 40 percent market share in Sub-Saharan Africa. Transsion Holdings has also seen a total sales volume of more than 246 million dual-SIM handsets, or phones which can hold two SIM cards.
McKinsey's report pointed to Chinese broadcaster StarTimes, which has employed a strategy of going in cheap and expanding later.
The company employs and trains locals while growing its viewership, and invests in both local and international programming. It has found particular success in Tanzania, the report said.
StarTimes' "focus on the local market has taken television viewing from an occasional luxury to a daily routine for many Tanzanians," according to McKinsey, thereby capturing Africa's growing middle class.
China's formalized One Belt, One Road infrastructure projects were also spurring mainland interest in the continent.
Tecno, a smartphone maker under Hong Kong parent company Transsion Holdings, has embodied Chinese companies' winning formula on the continent.
Handsets from the Tecno, which has a regional base in Nigeria, have practical innovations geared toward African markets.
These included a long battery life as reliable power sources can be difficult to come by, screens resistant to dust particles and cameras specifically adapted for darker skin tones. On top of this local understanding is a market-friendly price: Handsets typically cost between $50-$100.
Tecno has grown fast, and according to Transsion Holdings' website, its collective brands in Africa have a more than 40 percent market share in Sub-Saharan Africa. Transsion Holdings has also seen a total sales volume of more than 246 million dual-SIM handsets, or phones which can hold two SIM cards.