African traders in Hong Kong face up to new challenges

African traders and exporters in Hong Kong are facing the challenge of adapting to the changing market landscape in their home countries, especially as Sino-African trade gets stronger.

A new group, the African Business Association Ltd (ABAL), which launched last week, seeks to help those businesses stay ahead of the game and integrate better in Hong Kong.

African businessmen in the city mostly buy goods such as electronics in bulk and export them to Africa. Some operate logistics companies or sell goods and services to local consumers. Some of them have lived in Hong Kong for as long as 24 years and conduct their business in fluent Cantonese. But there is concern that their business models, which are generally small-scale, may become less effective as African countries become more developed.

"When Wal-Mart moves into affluent countries in Africa, you'll all be out of business," Jong Li, a co-founder of ABAL, told more than 30 African businessmen at last Thursday's soft launch in Cheung Sha Wan. "What will you do next and how will you stay ahead of the curve?"

Li, who is also managing director of investment firm RGL Holdings, met the traders to discuss strategies for African companies to stay on top in a changing economic climate.

Seven African nations are on the list of the 10 fastest-growing world economies this year, and China-Africa trade has grown at more than 30 per cent each year over the past decade.

Dona Harry, chief of Hong Kong's Nigerian Cultural Association, thinks ABAL can help African businesses "advance and go global".