Africa Economy: Talented workforce key to success of Chinese businesses in Kenya: study

he success of Chinese businesses in Kenya hinges on creation of a critical mass of skilled personnel across various sectors of the economy like manufacturing, construction and financial services, says a report published in Nairobi.

The Business Perception Index (BPI) 2014 survey received on Friday highlights bottlenecks Chinese firms face in Kenya and recommended a raft of interventions to solve them.

Researchers at Sino Africa Center for Excellence (SACE) foundation noted that red tape, insecurity, cumbersome tax regime and inadequate skilled labor were the major obstacles Chinese enterprises faced in Kenya.

Jinghao Lu, SACE project manager, said the Business Perception Index had debunked the myth that Chinese firms do not hire local employees.

"Contrary to a widely held view, the Chinese companies source the bulk of their workforce locally. The Business Perception Index is categorical that 78 percent of full time employees in Chinese companies operating in Kenya are local," said Lu.

Researchers said that skilled and motivated local workforce underpins the success of Chinese enterprises in Kenya.

The BPI revealed that Chinese companies had initiated training programs for Kenyan employees. Lu urged Chinese companies to scale up capacity development for local employees, and tap into local talent to foster healthy relationship with the wider society.

Lu said that by investing in local talent, the companies will win trust and confidence from regulators and the general public.

"The misconception Kenyans might have about Chinese firms could be addressed through a better public relations strategy. Companies should also embrace transparency and environmental stewardship," said Lu.

The business perception survey laid bare the challenges Chinese firms encounter in Kenya and recommended strategic interventions like dialogue with policymakers, regulators and clients.

Researchers carried the survey on 75 Chinese private and state owned enterprises in Kenya between February and June 2014.

Isaac Kwaku Fokuo, the SACE Founder, hailed Chinese companies for hiring talented workforce in their host country.

"There is plenty of under-utilized talent in Kenya and other countries with a huge presence of Chinese businesses. Companies will make minimal sacrifices to obtain and retain this talent," Fokuo said.

He added that skills development for lower to mid level cadre of employees will strengthen the grip of Chinese companies in the Kenyan market. Endi