How Chinese investments are transforming Africa: The impact of SANY and CADFund

Chinese enterprises are significantly contributing to Africa's and South Africa's industrialisation, job creation, and sustainable development, with SANY Africa and the China-Africa Development Fund (CADFund) standing out as key players. 

Their strategic investments and commitment to local value addition are fostering economic growth and strengthening China-Africa cooperation.

SANY Africa, a leading heavy equipment manufacturer, is solidifying its long-term presence in the region with a new South Africa headquarters base in Johannesburg. 

“SANY’s South Africa Headquarters Base is located in Johannesburg, covering an area of about 28,300 square meters, with a total building area of 14,000 square meters. It includes a steel structure plant, office building, and cafeteria, with a total investment of approximately R300 million,” SANY Africa President Ruigang Guo announced.

The ambitious project, which commenced in November 2023 and is slated for completion by October 2025, is set to be a cornerstone for SANY’s operations in Southern Africa. 

“Once completed, it will accommodate 150 staff and achieve an annual production capacity of 1,000 excavators. Looking forward, this facility will serve as SANY’s headquarters for Southern Africa, functioning as a regional manufacturing, logistics, and talent centre. It demonstrates our commitment to long-term investment, job creation, and local value addition,” Guo explained.

SANY's journey in Africa began in 2002, and over 23 years, it has generated sales exceeding RMB 20 billion, with over 23,000 active machines across the continent. In 2024 alone, SANY Africa's sales reached approximately RMB 5.6 billion. 

The company operates in more than 30 African countries, supported by 13 distributors, and its machines are deployed in over 50 nations.

Guo emphasised SANY’s localisation strategy, saying that under their localisation strategy, about 50% of our Africa team are local employees, and together with dealers, they have created more than 5,000 local jobs. 

He highlighted the company’s impact on critical sectors, noting: “Mining is a key sector in Africa. Large excavators such as SY500H, SY375H, SY365H, and the SKT105S wide-body dump truck are highly recognised for their durability and performance. 

“Our graders and single-drum rollers are known as ‘Infrastructure Experts’ for their proven reliability in Africa’s harsh working conditions.”

Beyond equipment supply, SANY aims to be a comprehensive partner. 

“SANY is more than an equipment supplier — we aim to be a long-term partner in Africa’s modernisation. In South Africa, we support industrialisation by localising manufacturing, training local talent, and building a full value chain,” Guo said.

The company is also active in green energy, with microgrid projects providing clean and reliable energy solutions.

Guo reiterated SANY’s commitment to human capital development. 

“At SANY, we believe in the proverb: ‘Don’t give a man a fish; teach him how to fish.’ Our focus is not only on providing equipment, but also on developing people. We invest in training programmes for employees, customers, and local engineers, helping them build skills that will last a lifetime.”

The China-Africa Development Fund (CADFund) plays a pivotal role in facilitating Chinese investments across Africa. 

Director Yu Qing explained that CADFund, established in 2006 during the Beijing Summit of FOCAC, is China’s first equity fund dedicated to investment in Africa, managed by the China Development Bank (CDB) with a total scale of $10 billion.

“By the end of August 2025, CADfund had made investment decisions totaling over $8.7 billion across 39 African countries, catalysing over $32.8 billion in Chinese enterprise investments and financing in Africa,” Qing stated. 

These investments span infrastructure, industrial capacity, agriculture, digital innovation, and green development, significantly contributing to local job creation and tax revenue.

In South Africa, CADFund has made substantial commitments, with investment decisions totalling over $1.5 billion for 21 projects by August 2025. These projects cover infrastructure, mineral resources, energy, manufacturing, digital media, and supply chains.

One exemplary case is the Hisense Home Appliances Industrial Park in Cape Town, a joint investment between Hisense and CADFund, Qing highlighted.

“This is the largest home appliance manufacturing plant in South Africa, invested in by Chinese enterprises. The park has an annual production capacity of one million televisions and 500,000 refrigerators, directly employing over 700 local workers and leveraging more than 4,000 local job opportunities,” he said.

Another success story is the FAW South Africa Assembly Plant in the Coega Industrial Development Zone. 

“In 2024, FAW's commercial vehicle sales ranked first in the South African market. By the end of August 2025, the FAW project will have created approximately 2,000 direct jobs in South Africa,” Qing noted.

The plant boasts 97% local talent utilisation and 70% product localisation, serving South Africa and neighbouring countries.

The GCL-Poly Photovoltaic Project, a joint investment by CADFund and GCL-Poly, stands as a testament to green energy cooperation. 

“Since its commissioning in mid-2014, the project has maintained stable operation, setting a strong example for subsequent initiatives. With an annual grid-connected electricity output consistently ranging between 280 and 300 million kWh, the project benefits over 130,000 households,” Qing detailed. 

This project has created 59 long-term local jobs and actively engages in community development.

mashudu.sadike@inl.co.za