Investing in Africa - The Chinese Private Sector Players

The informal economy accounts for 80 point eight % of jobs and is the backbone of economic activity in urban areas. This lends a form of mental fortitude, resilience and ability to manage the uncertainty that is linked to deeply informal markets with massive data and information asymmetries. The second factor is the unique approach chinese private sector players have towards risk. Not only do they seem more willing to take on the risks of doing business in africa, they more sensitive to the market and adept at identifying and managing risk. Chinese private sector firms also have advantages in the allocation of production factors, and can effectively control the cost of innovation and risk which translates to more flexibility in investment and operations.