Shanghai-listed Zhende Medical owner Wu Jianfei chose a plot in Tatu City near Nairobi for a new garments factory, joining hundreds of thousands of Chinese traders who migrated following Beijing's infrastructure push into Africa. Between fields of coffee at Tatu, factories from China and elsewhere produce solar panels, gas canisters and trucks in a repurposed plantation special economic zone. Their presence symbolizes growing Chinese investment in African mining, green energy and manufacturing, often led by private companies after years of state-funded infrastructure projects dominating Beijing's engagement.
According to China's commerce ministry, the total value of China's direct investment in African manufacturing reached almost $8 billion in 2025, up over 50 percent from 2016. More than 350 Chinese companies operate in Kenya, covering projects announced at $11 billion, with over half in manufacturing. In Tanzania, $12.5 billion of Chinese capital has been committed since 2017, two-thirds going into manufacturing.
Two factories near Dar es Salaam extend over 1km each, producing ceramic tiles, glass and steel. Another factory aims to produce $300 million of solar panels annually for the US market under the African Growth and Opportunity Act, tripling exports. The influx of Chinese capital is driven by overcapacity and dwindling profits at home, as well as cheaper labour, abundant resources and preferential market access in east Africa.
Trade between China and Africa reached $348 billion in 2025, a 17.7 percent increase from 2024. Data shows manufacturing and processing investment of $7.7 billion now exceeds extraction investment of $4.8 billion, marking a shift from natural resources to industrial development. Africa's next chapter examines the changes transforming societies and economies across the continent.
Source: Financial Times Companies · Summarized by HeadlinesBriefing