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Another market APUS focuses on is Indonesia, where it has invested in the market's biggest Wi-Fi connect service provider Zoomy.

Apart from the contributions of Jayaram, senior partner in McKinsey's Nairobi office, the report is also the work of Omid Kassiri, another Nairobi partner, and Irene Yuan Sun, engagement manager in the company's Washington office. Sun is also the author of the book The Next Factory of the World: How Chinese Investment Is Reshaping Africa.

Apparently, such a massive transformation won't be easy for China. There was a time when its workforce used to eke out a living by working in old-fashioned factories. But, China's changing economic priorities would mean the workforce issue needs to be handled well during reforms.

Another issue, he said, is the physical examination of patients.

Apart from the mixed-ownership reform, restructuring plans were also implemented to set up industry giants while reducing the total number of SOEs.