Weak supply chains hamper expansion of Chinese businesses in East Africa

Chinese private investors in Kenya and Tanzania say poor supply linkages are the biggest hindrance to their businesses, discouraging them from upgrading their ventures into more sophisticated production activities, according to a new paper from the China Africa Research Initiative at the Johns Hopkins University's School of Advanced International Studies.

The paper, Assessing Chinese Manufacturing Investments in East Africa: Drivers, Challenges and Opportunities, is based on information gathered from Chinese entrepreneurs in Kenya and Tanzania from 2016 to 2018.

The local supply of spare parts for machinery was almost non-existent, they said. International shipping and customs clearance for imports from Asia or Europe, on the other hand, was costly and time consuming.