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The total value of cooperation intentions exceeds US$80 million! Chinese hardware brands are rising on the African continent.

10-21

China has grown into the world’s largest manufacturer and exporter of hardware products, while Africa is emerging as a new key destination for China’s hardware exports. A recent China Hardware Brand Globalization Summit held in Shanghai attracted international buyers from African countries including Egypt, Jordan, Nigeria and South Africa, with intended cooperation volume exceeding USD 80 million on site.

After decades of development, China’s hardware product exports surpassed USD 160 billion in 2024. Hardware hand tools stand as the fastest-growing segment with budding competitiveness of domestic international brands. The industry is transitioning from the “1.0 Era of Product Export” to the “2.0 Era of Brand Globalization”.

From a Major Manufacturing Power to a Strong Brand Power

Statistics released at the National Autumn Hardware Trade Fair show that the hardware sector, a fundamental pillar of manufacturing, boasted a global market size projected to exceed USD 1.2 trillion in 2024. Chinese hardware products account for 35% of the global market share, yet penetration in high-end markets remains below 10%. Meanwhile, Chinese hardware manufacturers are boosting global competitiveness via technological innovation, digital empowerment and sustainable supply chain strategies.

Hong Yong, expert from the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, noted that China’s hardware industry still faces hurdles including weak brand influence, insufficient R&D investment (less than 2% of revenue), and international green and technical barriers such as the EU CE certification. Greater brand building, increased R&D spending and improved standard certification systems are required to drive the shift from a major manufacturing power to a strong brand power.

Mohammed, a senior buyer from Saudi Arabia, stated that Africa’s enormous market potential and booming economic growth render it a vital target market for Chinese hardware and tool exports. Chinese hardware tools currently capture 46% of Saudi Arabia’s market share.

China is also South Africa’s top source of imported hardware tools, accounting for 46.9% of the country’s total imports. South Africa has long been a coveted market for hardware enterprises worldwide.

A South African exhibitor shared that South Africa’s construction materials were mostly imported from Europe and the United States at relatively high prices in the past. Chinese hardware, building materials, production equipment and construction machinery boast outstanding market competitiveness in terms of product variety, quality tiers and pricing, holding massive trade potential.

Sayed, an Egyptian national who has lived in China for more than 23 years and engages in China-Africa trade, speaks fluent Mandarin. He explained that China exports a growing array of goods to Africa, with hardware products ranking among the most popular categories. His trading portfolio also covers consumer electronics and electric vehicles.

“Chinese goods are very well-received across Africa. Our family-run company maintains offices in Yiwu and Guangzhou to export Chinese merchandise to African clients. Hardware is one category with surging demand, ranging from small hand tools to production machinery,” Sayed said. “Demand for hardware will rise markedly as manufacturing sectors including automotive expand rapidly.”

In Sayed’s view, China has undergone rapid development, whereas Africa resembles China three decades ago, featuring fast population growth and tremendous consumption potential. He also observed the nascent rise of e-commerce across Africa. In March this year, Ethiopian Airlines Group inaugurated an e-commerce logistics hub at Addis Ababa Bole International Airport — Africa’s first dedicated e-commerce logistics center, which is expected to cut the transit time for overseas cargo to Ethiopia to under seven days.

Supply Chain Coordination & Challenges in Standards Innovation

When asked about obstacles facing Chinese hardware brands expanding overseas, Mohammed commented: “Delivery lead times and logistics solutions constitute the most prominent challenges in cooperation with Chinese suppliers, calling for more efficient supply chain coordination.”

Liu Jianhua, Chairman of the Power Tools Branch of the China Electrical Equipment Industry Association, stated that China’s power tool industry is shifting from DIY and OEM production toward mid-to-high-end segments, yet it is hampered by insufficient innovation and application of industry standards. Mid-tier manufacturers are urged to prioritize standard-related innovation.

Huang Heqin, President of Yuyao Hardware Products Association, shared local enterprises’ overseas expansion experience: “By promoting standardization and brand building through industry associations and leveraging government platforms to organize cluster-based overseas expansion, enterprises can effectively slash costs and strengthen risk resilience.”

Reporters learned that most hardware tool manufacturers are small and medium-sized enterprises (SMEs), which have begun to “go global in clusters” to build industrial ecosystems. Xavier Michon-Lehnebach, Chair of the Think Tank at the Global Alliance of Small and Medium Enterprises (GAPME), pointed out that integrating into local industrial ecosystems is a core priority for Chinese enterprises entering Africa.

“This necessitates partnerships between Chinese and European SMEs to advance sustainable development models,” Michon-Lehnebach elaborated. “European enterprises possess deep cultural roots in Africa, while Chinese firms excel in manufacturing and innovation. You boast unparalleled infrastructure capacity, highly cost-efficient manufacturing systems and rapid project delivery capabilities.”

He suggested Chinese enterprises could cooperate with French retailers operating across Africa to jointly develop local markets with Chinese-style innovation. Such cluster-based overseas expansion can drastically mitigate risks and lift success rates.

(Source: Yicai Global)

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