The December 2013 issue of African Review of Economics and Finance published an article titled "Temporary Chinese Migration to Madagascar: Local Perceptions, Economic Impacts, and Human Capital Flows" by Cornelia Tremann, School of Oriental and African Studies.
The article is based on 15 months of fieldwork in Madagascar between September 2010 and July 2012. There are an estimated 70,000 to 100,000 Chinese nationals residing in Madagascar. Most are traders of items manufactured in China. The Malagasy believe that most of the Chinese goods reaching Madagascar are of the lowest export quality. The Malagasy government has done little to limit the importation of Chinese goods where they compete directly with products manufactured in Madagascar. The author concludes that while many local Malagasy businesses have not been able to compete with Chinese imports others are finding ways to exploit the presence of the new Chinese business networks and supply chains in the country.
Showing posts with label Chinese traders. Show all posts
Showing posts with label Chinese traders. Show all posts
Friday, February 14, 2014
Sunday, November 10, 2013
Interview on China-Africa Issues
Andrea Williams with IRIE FM in Jamaica interviewed me for 50 minutes on 10 November 2013 on China's relations with Africa and lessons for the Caribbean. Click here for the audio transcript.
Because of the size of the audio file, it might take a couple of minutes to download.
Because of the size of the audio file, it might take a couple of minutes to download.
Monday, September 10, 2012
Africa and China: Traders and Resources
The Australian Strategic Policy Institute and the Johannesburg-based Brenthurst Foundation co-hosted in May 2012 an international dialogue on natural resource demand and China's economy. The event took place in Zambia. The participants concluded that China's appetite for resources will eventually abate and that could happen with cruel suddenness. The conference examined countries that have used their natural resources wisely to develop their human capital, build resilience and diversify their economies -- and those that have not.
The resulting August 2012 conference document contains a paper titled "Africa and China: Between Debunking and Disaggregation" by Greg Mills and another titled "Chinese Traders: The Opaque Underbelly of China's Presence in Africa" by Terrence McNamee.
Click here to access the document and then click download PDF.
The resulting August 2012 conference document contains a paper titled "Africa and China: Between Debunking and Disaggregation" by Greg Mills and another titled "Chinese Traders: The Opaque Underbelly of China's Presence in Africa" by Terrence McNamee.
Click here to access the document and then click download PDF.
Wednesday, April 18, 2012
Southern African Resistance to Chinese Traders
The Brenthurst Foundation in South Africa just published a fascinating study on the growing number of Chinese traders in South Africa, Lesotho, Botswana, Zambia and Angola. It confirms findings I encountered during travel to southern Africa in 2007 and subsequent following of press accounts from countries in southern Africa. The lead author of the study is Terence McNamee, Deputy Director of the Brenthurst Foundation.
The study concluded that Chinese traders have become fearful of the rising tide of resentment from Africans complicated by China's perceived dominance over many sectors of their economies. This was especially true in Lesotho, Angola and Zambia, and less so but increasingly in Botswana. Only in South Africa did traders express any sense of belonging or attachment to the country. Almost without exception, Chinese traders seal themselves in cocoons, completely cut off from local communities. The traders feel besieged by charges that they are using illicit means to rob and cheat Africans, rather than simply out-compete them. The survey painted a bleak picture of the status of Chinese traders within African societies.
The study found that only 20 percent of the Chinese traders had previous trading experience in China. Most of them saw the move to Africa as an opportunity to improve their economic status by owning a small business. In some countries, more than half of the traders come from Fujian Province, home to less that 3 percent of China's population.
The report suggested that the large number of Chinese migrants living in southern Africa and elsewhere could become China's Achilles Heel. The fear is there could be violence directed against the traders based on nationalist sentiments. Despite these problems, life in Africa still makes economic sense for Chinese traders, at least for now. Research shows that traders in Africa are making about three times what they might earn in China. At the same time, their presence in Africa is more precarious than in other parts of the world.
Click here to read the entire report.
One issue that needs more research is the reaction of African consumers to the Chinese traders. My experience is that the consumer, as opposed to the competing African trader, is more receptive to the Chinese presence. They are often seen as providing a product that is less expensive and of equivalent quality. I agree, however, that African traders and African companies that manufacture products that compete with Chinese products are deeply concerned with the Chinese trader presence.
The study concluded that Chinese traders have become fearful of the rising tide of resentment from Africans complicated by China's perceived dominance over many sectors of their economies. This was especially true in Lesotho, Angola and Zambia, and less so but increasingly in Botswana. Only in South Africa did traders express any sense of belonging or attachment to the country. Almost without exception, Chinese traders seal themselves in cocoons, completely cut off from local communities. The traders feel besieged by charges that they are using illicit means to rob and cheat Africans, rather than simply out-compete them. The survey painted a bleak picture of the status of Chinese traders within African societies.
The study found that only 20 percent of the Chinese traders had previous trading experience in China. Most of them saw the move to Africa as an opportunity to improve their economic status by owning a small business. In some countries, more than half of the traders come from Fujian Province, home to less that 3 percent of China's population.
The report suggested that the large number of Chinese migrants living in southern Africa and elsewhere could become China's Achilles Heel. The fear is there could be violence directed against the traders based on nationalist sentiments. Despite these problems, life in Africa still makes economic sense for Chinese traders, at least for now. Research shows that traders in Africa are making about three times what they might earn in China. At the same time, their presence in Africa is more precarious than in other parts of the world.
Click here to read the entire report.
One issue that needs more research is the reaction of African consumers to the Chinese traders. My experience is that the consumer, as opposed to the competing African trader, is more receptive to the Chinese presence. They are often seen as providing a product that is less expensive and of equivalent quality. I agree, however, that African traders and African companies that manufacture products that compete with Chinese products are deeply concerned with the Chinese trader presence.
Subscribe to:
Posts (Atom)
