China - Africa Cell Phone Trade

An estimated 20 percent of sub-Saharan African phones originate from Chugking Mansions, a dilapidated complex of thousand flats, guest houses and businesses located on some of Hong Kong's prime real estate.

Traders from all over the world come here to source cheap Chinese goods, but overwhelmingly the trade has been in mobile phones destined for Africa.

Mohamed Ali Diallo moved his phone dealership from the Chinese mainland three months ago.

[Mohamed Ali, Owner, Brothers Co. Ltd]:
"Chungking Mansions is very well known and is, I can say, the other end of the bridge linking Africa to China and most of the phones going to Africa, 20-30 percent came from this house."

As a free trade area one trader who asked not to be named said buying phones already in Hong Kong cuts out the hassle of Chinese customs.

"Sometimes you feel, why go through the stress of going over to the factories (on mainland China) yourself when you could have the middle man do that? So it's an easy way to for us to come over to Hong Kong and get these things easily from the locals."

Having studied Chungking for years, Professor Gordon Matthews says traders come here because Hong Kong provides a degree of protection.

[Gordon Matthews, Chinese University Professor]:
"Mobile phones, from what I hear, China is not to be trusted. Because you might get goods that don't work very well. Hong Kong tends to be trusted much more and many of the dealers, most of the dealers give some sort of guarantee. You can much clearer, in a certain way, be certain of what you're getting. So Chungking Mansions has emerged as this major centre for buying phones."

Granted a 15-day stay, dealers scour Chungking's 90 outlets for deals, making competition stiff.

Nevertheless, an estimated 10 million handsets left Chungking Mansions for Africa last year.

Phones are transported by air, or either sent by cargo - but like Oury from Guinea, most are carried home in luggage.

[Barry Mamadou Oury, Mobile Phone Dealer]:
"We can have 60kg to go for the airplane. Now we can take 60kg, for the phone, take small watch. 60kg for we go Africa."

But the economic downturn has hit the business hard, with fluctuating exchange rates and slowing remittances making mobile phones a luxury to many Africans.

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[okevino]

china goods and hong kong goods are the same shyt. what a fool.

it's more of a reputation thing.