Could China help make Africa a factory for the world?
Chinese foreign direct investment in manufacturing in Africa surged to $12.3bn in 2025, spread across 64 new projects, as Chinese manufacturers look to take advantage of Africa's relatively low labor costs and improving economic prospects. Kenya's special economic zones, such as Tatu City, are attracting Chinese investors, with over 1,000 Chinese companies in talks to set up factories.
Chinese investment in Africa's manufacturing sector has seen a significant surge, with $12.3bn invested in 64 new projects in 2025. This marks the highest number of projects in a single year in at least a decade. Kenya is a key destination, with its special economic zones such as Tatu City attracting Chinese investors. Tatu City is in talks with over 1,000 Chinese companies. The investment is driven by Africa's rapid population growth and improving economic prospects. The IMF predicted that annual economic growth in sub-Saharan Africa would be faster than in the Asia-Pacific region in 2026.
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