Markets: Chinese AC exports to Africa are soaring

Exports of air conditioners from China to Africa grew to over 28.8 million units in the first 8 months of 2010, an increase of 51.3% over last year, according to Chinese customs figures. This growth is even greater than that of Chinese exports of AC units to Latin America, Europe and Asia. Africa has a population of 1 billion and its market for household appliances has maintained double-digit annual increases in recent years. Statistics indicate that China's exports to a number of African countries rose by more than 100% in the first 8 months of 2010. The jump in exports to Africa is above all due to widespread tropical and humid areas on this continent. Up until now, the household appliances markets has expanded the most in Egypt, South Africa, Nigeria, Algeria, Libya and the Central African Republic. The market potential in Africa has triggered the Chinese manufacturers' ‘gold rush' to the continent. However, instead of trade and export-oriented, the Chinese enterprises focused more on the production layout at this time. Haier, Hisense, and Shinco are expanding in Africa. Haier has built industrial parks in Tunisia and Nigeria, realizing local production of various products. Haier has also brought some key component manufacturing bases to Africa. Shinco has built factories in Nigeria, introducing its brand, technologies and management. Shinco is currently the specified brand for Nigerian government procurement. Hisense, after setting up factories in South Africa, has extended its sales network to more than 10 African countries. JARN, November 2010