From a windowless room in a dilapidated Hong Kong high-rise, Ali Diallo sells Chinese electronics to retailers across Africa. The modest surroundings belie the multi-million dollar business the West African trader has built in the five years since he moved to the territory.
The 39-year-old from Guinea is part of a growing number of African entrepreneurs thriving in southern China as trade between the world’s No. 2 economy and fastest-growing continent soars.
Sitting in a small room cluttered with boxes destined for Nigeria, Diallo welcomes the latest delivery of Chinese-made mobile phones to his office in Chungking Mansions — a bustling labyrinth better known for budget hotels and no-frills restaurants. The building is also the go-to place in Hong Kong for African buyers in search of cheap electronics, with phones selling from about US$8 each.
“In China there are opportunities for people who can start from scratch and build up their own business. Obviously, not in one day, but through hard work and networking you can do it,” said the trader, whose company sees an annual turnover of US$11 million a year in phone and tablet sales alone.
Trade between China and Africa hit new highs of nearly US$200 billion last year, according to official Chinese data, driven by the Chinese industry’s appetite for African raw materials. African traders in southern China are the flipside of this deepening relationship. Entrepreneurs like Diallo have made Chungking Mansions one of the most important passageways for Chinese gadgets air-freighted to Africa.
According to Gordon Mathews, professor of anthropology at the Chinese University of Hong Kong, up to one-fifth of all mobiles in Africa have passed through the building’s corridors in recent years.
However, while the 17-floor hive is the storefront, the engines of the trade lie in the industrial heartland of China’s Guangdong Province.
This mecca for low-cost manufacturing has drawn entrepreneurs from across Africa, creating one of the largest black communities in Asia.
At least 20,000 Africans live in In the provincial capital, Guangzhou, research from the local Sun Yat-sen University shows.
Although their number is a fraction of the 1 million Chinese now living in Africa, these migrants play a key role in their new home.
“Traders bring with them vast skills and capital, supporting large amounts of Chinese manufacturers... If all the African traders were to vanish it would have an enormous effect on the south China economy and businesspeople realize this rather strongly,” Mathews said.
Many traders work in and around a downtown neighborhood dubbed “Little Africa,” or more insensitively, “Chocolate City,” by the local media. Along its winding central alley, a restaurant serves tilapia with fufu — a staple Congolese meal of fried fish and cassava — as well as traditional Chinese fried rice and steamed fish.
A few kilometers away at the Canaan Export Clothes Trading Center, a vast complex where Igbo is spoken as often as Cantonese, Lamine Ibrahim loads thousands of jeans into bags destined for Africa.
He is one of several hundred Africans who has forged a deeper link to the city by marrying a local woman — a relationship founded on love, but also economic prudence.
“For [communication] with the Chinese people ... she can do. I buy my car, she is there, I open my own factory, she is there. So if I have no wife it’s not easy,” Ibrahim said in broken English.