Unlocking cross-border growth: How HLB’s Global China Service is supporting Chinese investment into Africa

Africa today is home to the world's youngest populations, the most dynamic emerging markets, and a spirit of innovation born from overcoming unique challenges. Commercial momentum is accelerating in many African countries, and opportunities for international businesses are expanding. Earlier this month, HLB Djibouti hosted our network’s Middle East & Africa Regional Conference in Djibouti City, where this momentum was explored in greater depth.

Among an array of insightful conference sessions, I was pleased to moderate a panel showcasing the strength and collaboration of the HLB Global China Service. The session brought together representatives from HLB China, HLB Zambia, HLB Djibouti, HLB South Africa, and Chinese enterprise SinoHydro. Rather than presenting market insights in theory, the panel demonstrated how cross-border cooperation between HLB firms - and with clients - supports long-term investment in Africa.

The pre-departure view from China

The conversation began with the outbound investment perspective from China. Demand for international growth is being driven by diversified supply chains, access to natural resources, and new consumer markets. However, alongside this ambition lies uncertainty.

Chinese investors consistently seek clarity on:

• Viable legal and structuring options for cross-border projects

• Eligibility for tax incentives and capital allowances

• Differences between markets across the African continent

These early-stage questions highlighted an important reality: many of the most critical decisions are made before any commercial investment is made. Advisory support originating in China, that is connected seamlessly into Africa, gives investors confidence, reduces delays, and supports informed decision-making.

The African landscape

The panel then shifted focus to the perspective of HLB firms on the ground in Africa. Growth prospects remain exceptionally strong, supported by rapid urbanisation, infrastructure development, and demographic momentum. However, the session also emphasised that Africa is not a uniform investment environment.

Key realities surfaced, including:

• Significant variation between countries in regulatory frameworks, tax policy, and compliance expectations

• Differing approval processes at national, provincial and municipal levels

• The importance of community engagement and stakeholder management for project acceptance

• The need for investors to understand local content and employment requirements early in project design

Regulatory stability was also discussed. A number of African markets, including South Africa and Zambia, are characterised by gradual and signposted reform rather than volatility, but compliance requires consistent monitoring and local insight. The shared message from African firms was clear: projects succeed when investors build partnerships, not just facilities.

The client perspective

From HLB client Sinohydro’s standpoint, long-term success in Africa depends on more than technical capability, it relies on trusted partnerships. With each new market comes a new layer of regulatory complexity, community expectation and operational risk.

Understanding the internal culture of a Chinese company is essential for effective collaboration. Advisors who anticipate both global strategic priorities and regional realities can help organisations like Sinohydro make better-informed decisions before project mobilisation begins.

Proactivity matters; aligning on strategy early, shaping structures in advance, and ensuring consistency across jurisdictions all help reduce friction once operations are underway.

Key takeaways

Across regions and perspectives, a clear pattern emerged. Successful cross-border investment into Africa relies on three interdependent factors:

1. Early engagement - bringing African expertise into client conversations while projects are still conceptual

2. Deep appreciation of local environments - understanding regulations, communities, and cultural expectations

3. A seamless network across geographies - providing continuity so clients do not experience fragmented advice

The session illustrated that no single country office can deliver all of this independently. The real strength lies in the HLB network collaborating as one team, mirroring the path investors take from China to Africa and supporting them across each stage of their development.

Looking ahead

The Djibouti panel made one thing unmistakably clear: Africa is open for business. But make no mistake, future phases of international investment in Africa must be shaped by partnership. Chinese companies will continue to explore new markets, and African nations will continue to create environments that welcome sustainable levels of investment.

For businesses considering entry into Africa from China - or expanding across multiple African markets - the most effective support begins well before investment decisions are finalised. HLB’s Global China Service connects clients with advisors in both China and Africa from the very first conversation, ensuring early insight, cultural understanding, and continuity throughout the investment journey.

We look forward to exploring how our cross-border teams can support your organisation’s next phase of growth in Africa.