China-Africa trade growth attracts investment

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A McKinsey and Company report says China has become Africa’s biggest economic partner in just two decades.

Trade between the two sides is growing at a rate of around 20 percent per year, attracting further investment.

The report also shows that China's partnership with Africa also covers sectors such as investment, infrastructure financing and aid.

However, many Chinese businesses are still reluctant to invest in Africa, because the market lacks effective regulation and supervision.

But a senior partner from McKinsey said that Chinese companies are treated no differently from other businesses and that many incentives exist to invest in the continent.

"If you're investing in another country, you are treated the same as the local companies," said Kartick Jayaram, "The single biggest question we get from any minister, regardless of sector, is can you bring me investment that will create jobs for my country? Pretty much every country will give you tax free incentives for a period of time until you become positive.”

“Now some countries have better regulations and laws.The ones with the most robust relationships have the tightest regulations and management,” he said.