China’s Control Of The African Market Shareholders
China has got one of the fastest growing economies in recent history. They produce almost everything and sell to the rest of the world. In Africa these days, almost everything is from China, from clothes right down to safety matches and they are all very cheap. If you aren’t familiar with the ‘China price’ phenomenon, it practically means products made in China that sell at a very low price. It doesn’t sound so bad to buy something for, less right? At least you get to save money. No, in that aspect it’s not bad at all.
The problem is when local producers in other countries, start making losses because of this. So, for example, Ghana had several textile factories in the country, producing tons of fabric and making the country some decent cash. Then slowly but surely, fabric of very similar designs (in most cases, identical designs) started flooding the market from China. When people started rushing for the cheaper fabric, majority of our factories closed. There was no more cash from them, and all the workers were left jobless.
So, these local textile factory owners were making losses, even though their products were of higher quality. The amount of money a consumer saves when they buy a cheap product, is nothing compared to what the company producing this product makes, so at the end of the day everyone except Chinese companies lose.
Today, China owns up to 70% of the world’s market share, for various products including toys and shoes. When you look at the stats, it can really be depressing if you are an African shoe company. So many business owners complain all the time, about how their sales are dropping because their customers are finding Chinese alternatives, for as low as half the price. So, are African producers doomed? Is there hope at all for the rice producers, fashion designers, soap makers and oil factories? It may seem dark and hopeless, but the future isn’t bad at all if we do the right things.
In America for instance, many consumers are opting for locally made products these days because they know that buying these products helps a fellow American. The security of being able to hold someone accountable should anything go wrong, is also another reason for choosing local businesses. With these steps other countries will also be able to compete with China