Hong Kong is inviting South African tech start-ups to join the country’s thriving tech ecosystem.
According to Stephen Phillips, director-general of investment promotion at InvestHK, the department of the Hong Kong Special Administrative Region (HKSAR) government responsible for foreign direct investment, Hong Kong is stepping up its drive to attract South African and Pan-African tech start-ups and digital businesses to the HKSAR.
HKSAR has a presence in 33 markets and is now actively building mutually-beneficial relationships with African and South African enterprises, such as major banks, metro development organisations and the Johannesburg Stock Exchange.
The organisation says Hong Kong offers a range of incubation, funding and growth support programmes to help innovators succeed.
Phillips notes start-up businesses are thriving in Hong Kong, with nearly 4 000 new businesses from around the globe now based there – 52% up on 2018.
These start-ups operate in myriad sectors; however, most are in the digital technology sector, says HKSAR.
It states that many of these take advantage of Hong Kong’s specialised incubators and business accelerators, as well as comprehensive government funding schemes.
Through Startmeup.hk, InvestHK helps innovative and scalable start-ups to set up or expand in Hong Kong.
Hong Kong is Asia’s leading business destination and recognised as the gateway to Mainland China and Asia.
The Special Administrative Region is now stepping up its efforts to attract African and South African business, with the opening of InvestHK representative offices in SA and Kenya.
Hong Kong, located within five hours of travel by two-thirds of the world’s population, is the ideal entry point to the region, Phillips says.
He adds there is growing interest among African businesses in the potential for expansion into the Asian market.
“For years, there has been Chinese investment into Africa and cordial relations between China and some African countries, and we are now seeing the start of flow-back investment into China out of Africa.”
Phillips points out that with a local population of 7.5 million and 86 million from the Greater Bay Area, Hong Kong is a significant art, food and consumer goods market, with significant opportunities for smart city and internet of things technology, electronics and green technologies.
“Hong Kong offers a route to growth markets in Asia, with their demographic dividends, high rate of tech adoption and growing intra-Asian investment flows. Of course, there is also the economic beast – Mainland China – with opportunities to enter the market through JVs [joint ventures] and partnerships.”
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