Partners in prosperity

Chinese and Kenyan companies link together to seek success in East African market

In response to China's commitment to strengthen Africa's industrial capacity, made during the Forum on China-Africa Cooperation in Johannesburg in December 2015, Chinese private sector investors are making a foray into the African market through joint ventures with local companies.

Ritar Power, a battery manufacturer based in South China's Guangdong province, and Foton Motor Group, a Beijing based commercial vehicle manufacturer, have partnered with Kenyan companies in a bid to penetrate the East African market.

During the China-Africa Industrial Capacity Cooperation Exposition held in Kenya's capital of Nairobi on Dec 13 to 16, Ritar signed a memorandum of understanding with Chloride Exide Kenya Ltd, the largest battery and renewable energy distributor in the East African region.

Under the agreement, Chloride Exide will be the exclusive distributor of Ritar products in Kenya, Uganda and Tanzania.

According to Kitty Peng, the sales director of Ritar Power, the companies are optimistic about penetrating the East African market through the partnership.

She says her company looks forward to growing its revenues in the region to $30 million by the end of 2018.

"We chose Chloride Exide because it has a good brand image. It's a well-known manufacturer of batteries and the company is big. We therefore look forward to growing together in the region," she says.

Karanja Njoroge, the general manager of Chloride Exide, says that, through the partnership, Ritar Power will take advantage of Chloride Exide's knowledge of the East African market, while his company will benefit from Ritar's global expertise in storage.

They will promote the uptake of renewable energy solutions, such as solar and wind power, by providing affordable batteries in the East African region.

"China has developed advanced technology in tapping renewable sources of energy. We wish to bring those technologies in East Africa through this partnership," says Njoroge, adding that the partnership extends to system design.

Njoroge says Ritar Power was a natural partner because both companies are industry leaders in their respective countries. They have signed a five-year renewable agreement.

Foton Motor Group signed a partnership agreement with Pewin Motors Ltd, one of Kenya's leading auto dealerships. Under the agreement, Pewin will distribute Foton cars in the Kenyan market.

Zhao Xiao, vice-president of Foton International, says his company will be committed to developing a wide distribution network across Kenya.

"We will make it easy for Kenyan consumers to access high quality motor vehicles from China," he says.

David Kirigua, managing director of Pewin Motors Ltd, says Foton plans to start assembling its vehicles in Kenya, meaning job creation and economic growth.

He says the construction sector in the country will greatly benefit from Foton's construction vehicles. The company will also supply high-quality, affordable buses to Kenya's transportation sector.

"We are inviting people who are interested in venturing into the motor trade to get in touch with us. We intend to have dealers in every county," he says.

Having spent 40 years in the motor industry, Kirigua says he has confidence that Foton will supply the Kenyan market with high-quality vehicles.

"I have visited Foton's motor vehicle assembly plants in China and, from what I saw, I couldn't have a better choice than Foton," he says.

Founded in 2009, Pewin Motors sells and services Chevrolet vehicles, including the Chevrolet Traiblazer sport utility vehicle and the Chevrolet Cruze sedan.

Foton was founded in 1996 and produces a full range of commercial vehicles, including medium and heavy-duty trucks, light-duty trucks, vans, pickups buses and construction vehicles.

It has a production and sales volume of around 8 million vehicles and is currently the Chinese commercial vehicle manufacturer with the widest range of models and the largest scale.

edithmutethya@chinadaily.com.cn

(China Daily Africa Weekly 12/23/2017 page29)