Meanwhile budget smartphone maker Transsion that leads sales in Africa, launched a successful US$400 million IPO on China's hot new tech-focused stock market this year, and has achieved runaway success with its Tecno phones across the continent.

Transsion has its own venture capital wing called Future Labs, and hosted the China Africa Mobile Internet Economy Summit (CAMIES) in Nairobi earlier this year, inviting a number of other large Chinese investors, companies and partners, including JD Finance and UnionPay, to showcase their ecosystem. Their portfolio company Boomplay raised US$20 million earlier this year, while Palmpay took home another US$40 million.

Lesser-known companies such as Cleverhome, a Shanghai-based e-commerce company that sells products including building materials, home appliances and motorcycles to Africa, raised money from Gobi Partners. Historically, Chinese VC firms tend to invest based on relationships, so it makes sense that Chinese-based companies have an advantage in courting these funds.

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Neither is the interest in Africa an accident.

Over the past decade, the Chinese government has built physical and digital infrastructure across Sub-Saharan Africa, laying the groundwork for the private sector to invest in projects based on these foundations. Initially, this was traditional industries, such as extraction and export/import, but this year has seen a wider boom in Chinese VC investment.

China VCs have looked outwards after a collapse in the domestic market and a cooling off of the red-hot tech sector at the beginning of the year, with a plunge of almost 70 per cent in deals in January alone. Southeast Asia, close to China and with some similarities such as high levels of mobile phone penetration, was an initial beneficiary of this trend. However, those VCs with higher risk appetite, have also sought out MENA and Sub-Saharan Africa.

Take Beijing-based MSA Capital for example, which invested in Egyptian transport technology start-up SWVL’s US$42 million Series B-2 financing round. They started first in the MENA region, as they already had a presence in Bahrain. But they are now looking to expand and their focus verticals, such as AI and genomics, are still relatively nascent industries in Africa, making them very strategic partners.

And new developments are coming.

In November, Lori Systems, a cargo-transport logistics platform, reportedly raised an unverified amount of US$30 million from Asian-focused VC firm Hillhouse Capital and Shenzhen-based VC Crystal Stream. However, this deal is different from the rest.

This company had no original connection to China. But now that they are backed by Chinese money, more China investors may be willing to get involved – particularly in industries like logistics in which they have deep expertise.

“We really appreciate the relationship we have with our Chinese investors, and we hope we can set an example for other scale-ups as well on how to work with investors with a different and unique perspective,” said Josh Sandler, chief executive of Lori Systems. “We hope that our success will be a good reason for Chinese VCs to invest in other African start-ups with traction.”

In China, venture capitalists prefer to invest in ecosystems, using economies of scale, and invest in start-ups that reinforce each others’ success or have shared customers.

However, most Chinese investors have not spent a lot of time in Africa and therefore lack on-the-ground nous. Perhaps this is one reason why they choose to invest in later stage companies that already have proven traction and familiar business models.

Chinese VCs also tend to be interested in companies that have intersections with China – meaning that they either source significantly from China or can export to the country. With more success stories, this appetite may change and with many African venture capital funds not as flush with cash as their Chinese counterparts, this tends to drive collaboration.

A number of Chinese funds have earmarked money specifically for Africa as part of China’s Belt and Road Initiative, but many of these funds have little or no Africa experience. Since local funds have on-the-ground experience, and much better context about potential investee companies, Chinese VCs can benefit from co-investing.

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While European and American investors have tended to favour ‘financially inclusive’ companies in Africa in recent years, China has looked towards more profitable fintech firms in areas like infrastructure and payments.

Other high potential verticals include B2B2C companies like Sokowatch and Copia, as well as logistics or mobility companies such as Lori and Kobo360. Energy companies are some of the fastest-growing on the continent, but pay as you go (PAYG) companies will be more difficult for Chinese investors since this business model does not really exist in China.

Some Chinese tech companies have also created their own versions of SaaS models – seed stage venture capital funds that focus on enterprise tech – which can be localised for Africa.

To date, most Chinese investors have invested in post series A funding rounds but the success of some of these tech stars will reassure more conservative Chinese investors about the risks in Africa.

This is only the beginning, and there is great potential for not just increased Chinese investment, but also more equal Chinese engagement and strategic alliances in future.

Stephany Zoo is the founder of the China Africa Tech Initiative, and head of marketing of AZA, which helps businesses move money in and out of Africa.