Chinese Consumer Brands Expand Across Africa as Exports Surge and Traditional Investments Decline

Chinese business activity in Africa is undergoing a major realignment. With returns in commodity and construction sectors falling, Chinese investment in those areas has declined about 40 percent since 2015, according to Rhodium Group. At the same time, China’s exports to Africa have climbed 28 percent year on year in the first three quarters of 2025, after a 57 percent increase from 2020 to 2024. Most exports now consist of higher-value manufactured goods such as electronics, plastics and textiles.

As Africa’s fast-growing economies expand and household spending is projected to surpass two trillion dollars by 2030, Chinese companies are targeting local consumers. Solar products, medical supplies, baby items and household goods are seeing strong demand, while established players like Transsion, Huawei and Midea continue to scale across the continent. Midea has built factories in Egypt and plans additional investments.

The shift is visible on Chinese social media platforms such as Xiaohongshu and Bilibili, where entrepreneurs share their experiences launching businesses in Africa, from electronics trading to bubble tea shops. Some report six-figure earnings, though analysts caution that results may be exaggerated.

E-commerce platforms are also boosting the reach of Asian brands. Euromonitor notes that many Chinese ventures sell essentials such as diapers, packaged foods and small appliances. Growing adoption of the Chinese yuan, used in about 30 percent of trade invoicing, may encourage deeper commercial ties, though analysts warn that structural limits remain due to China’s trade surplus and global dependence on the US dollar.

The surge in imports raises concerns about undermining African manufacturing, prompting experts to call for more local production. Some Chinese firms are responding by building factories on the continent. Guangzhou-based Sunda International has opened over 20 production centers in Africa and reportedly earns up to 450 million dollars annually supplying basic consumer goods. Several of its facilities are located in Zambia, where Premier Li recently signed a 1.4 billion dollar rail modernization deal to improve regional logistics.