Inside Hong Kong’s bid to deepen Africa business ties through tax incentives, innovation

As Africa looks east for new markets, investment and technology partnerships, Hong Kong is positioning itself as the strategic bridge connecting African businesses to China and the wider Asian market. During a visit to Kigali for the Africa CEO Forum 2026, Loretta Lee, Associate Director-General of Investment Promotion at Invest Hong Kong (InvestHK), outlined how Hong Kong is expanding its engagement with African economies through trade, finance, logistics and innovation. Speaking in an interview with The New Times, Lee outlined why Hong Kong believes it remains one of the world’s most strategic business gateways, particularly for African companies seeking access to China, Asia-Pacific markets, international finance, and global supply chains. Beyond geography, Lee underscored the significance of tax incentives, infrastructure, and decades of financial integration between Hong Kong and Chinese Mainland. For African entrepreneurs, investors, exporters, and startups, the interview unpacked how Hong Kong is positioning itself not merely as an international business hub, but as what Lee repeatedly called a “super connector” between Africa, China, and the rest of Asia. Africa’s growing importance Lee described Africa as one of the most important growth regions in the world today. “Africa holds a strategic position in the Global South,” she said, adding that the continent represents “a vital engine of growth” at a time of increasing global economic uncertainty. Her visit to Kigali and other African cities forms part of InvestHK’s broader strategy to deepen economic ties with the continent’s economies and encourage African businesses to establish a presence in Hong Kong. The mission comes as trade relations between China and Africa continue to evolve beyond traditional infrastructure projects and raw material exports toward technology, innovation, logistics, fintech, and manufacturing. According to Lee, Hong Kong wants to become the platform where those relationships are built. “Hong Kong plays a strategic role in linking capital, talent, innovation and technology between Africa, mainland China and international markets,” she explained. Why Hong Kong says it is a unique investment partner There are many global financial centres competing for international business, from London and Dubai to Singapore and New York. So, why should African investors choose Hong Kong? Lee cited three major advantages: proximity to Chinese Mainland, low taxation, and ease of doing business. Hong Kong operates under the “One Country, Two Systems” framework, which allows it to remain part of China while maintaining its own legal and economic systems. That means Hong Kong continues to use English common law, one of the most internationally recognised legal systems for business and trade. “We inherited the legal institutions from the British colonial era, including common law,” Lee said. “Companies that work internationally understand how the system works.” Hong Kong also uses both English and Chinese as official languages, another advantage for international investors. But perhaps the biggest selling point is taxation. Currently, Hong Kong hosts around 11,000 overseas and Mainland companies, many operating from small offices or business centres rather than expensive corporate towers. For Lee, that proves businesses of all sizes can succeed there. “We see a very bright future,” she said. “Africa will trade much more with Asia, through Hong Kong into the Chinese Mainland and the region.” A tax system designed for business growth, profits Lee explained that Hong Kong’s tax regime is friendly, describing it as one of the most competitive in Asia. For instance, corporations in Hong Kong pay a standard profit tax of 16.5 per cent. However, small and medium-sized enterprises receive a lower rate of 8.25 per cent on the first 2 million Hong Kong dollars in profits, equivalent to roughly USD $250,000 . For African startups and SMEs trying to enter Asian markets, Lee said the system is deliberately designed to reduce pressure on growing businesses. “If a company makes losses, those losses can be carried forward indefinitely,” she explained. “Only when you become net profitable do you begin paying tax.” She also highlighted what Hong Kong does not tax. “There is no VAT, no sales tax, no turnover tax,” Lee said. Dividends paid to shareholders are tax-free, while money transferred outside Hong Kong also faces no withholding tax. “Everything you earn after paying your modest profit tax is yours,” she said. “We want to reward entrepreneurship and risk-taking.” Rwanda and Hong Kong: two hubs thinking big Lee praised Rwanda, describing the country as efficient, clean, and optimistic. She also drew similarities between Rwanda’s ambitions and Hong Kong’s role as a connector economy. Rwanda has increasingly positioned itself as a regional hub for innovation, logistics, finance, and technology. Lee believes Hong Kong can help connect Rwandan companies to Chinese technology ecosystems, especially in nearby Shenzhen, China's innovation powerhouse. From Hong Kong, Shenzhen can be reached in just 14 minutes using high-speed rail. That integration, she said, gives businesses direct access to one of the world’s largest technology, manufacturing and innovation ecosystems. China currently produces more than 12 million tertiary graduates every year, including over 3 million in science, technology, engineering, and mathematics (STEM) fields. Even the top 1 per cent of those graduates, Lee noted, represents around 30,000 elite scientists and engineers annually. Many of them are concentrated in Shenzhen and the Greater Bay Area near Hong Kong. For African businesses seeking partnerships in manufacturing, electronics, fintech, or artificial intelligence (AI), Hong Kong positions itself as the service platform connecting them to that ecosystem. A gateway for African commodities Hong Kong recently announced new tax incentives for qualifying physical commodity traders, reducing profit tax from 16.5 per cent to 8.25 per cent. For exporters of coffee, tea, gold, minerals, and agricultural products, sectors where countries like Rwanda are highly active, the city hopes to become a preferred trading hub. Hong Kong is also expanding its precious metals storage capacity dramatically. According to Lee, the city is expanding its gold storage capacity from 200 tonnes to 2,000 tonnes – a tenfold increase within three years. That expansion aims to strengthen Hong Kong’s role in commodity trading, shipping, and logistics for Asian markets. Combined with its position as the world’s leading offshore trading hub in Chinese national currency Renminbi, Hong Kong hopes to offer African exporters easier access to Chinese buyers and financial systems. The IPO capital of the world Lee also pointed to Hong Kong’s financial markets which hold great potential going by initial public offering (IPO) ranking. “The Hong Kong Stock Exchange was the number one stock exchange in the world last year,” she said, noting that it outperformed both New York and London in initial public offerings. For African mining firms, fintech startups, logistics companies, or agribusinesses seeking international capital, Hong Kong wants to become the fundraising destination of choice. At the same time, Beijing is encouraging Chinese companies to “Go Global,” using Hong Kong as the launchpad for overseas expansion. “Come to Hong Kong” Lee’s strongest message to African businesses was that building relationships still matters. “The easiest way for Rwandan companies to benefit is to come to Hong Kong and establish a presence there,” she said. In her view, physical presence remains critical in Asian business culture.

News

Inside Hong Kong’s bid to deepen Africa business ties through tax incentives, innovation