Chinese State-Owned Companies and the Mining Sector in Africa

The Ivey Business Journal published in March/April 2013 a brief analysis titled "Chinese State-owned Enterprises in Africa: Myths and Realities." The authors, Namukale Chintu and Peter J. Williamson, both with the Judge Business School at the University of Cambridge, conclude that while Chinese SOEs fall short in some aspects of good governance and best practice, the economic benefits associated with their investments are significant. 

Chinese Workers in Africa

Chinese engineers' compound on road to Chobe National Park in Botswana. Flickr/George Lamson

Yejoo Kim, research analyst at Stellenbosch University's Centre for Chinese Studies, wrote an interesting commentary published on 10 June 2013 titled "Chinese Workers in Africa: Risking More, and Hoping To Earn More."

It focuses on the growing backlash in Africa against Chinese working conditions. Kim points out that Chinese companies have replicated throughout Africa working conditions that exist in China. These conditions are sometimes harsher than those experienced in Africa. While the often poor conditions apply to both African and Chinese workers, Chinese continue to accept them as they often earn twice what they could earn in China. Because there is growing criticism of these Chinese working conditions in Africa, the Chinese government is encouraging its state-owned enterprises to respect local regulations.

Chinese Investment in Africa

The Vale Columbia Center on Sustainable International Investment published on 15 April 2013 a brief study titled "How the Private Sector Is Changing Chinese Investment in Africa" by Xiaofang Shen, senior visiting scholar at the Johns Hopkins University School of Advanced International Studies.

The study explains that Chinese FDI in Africa is becoming increasingly diverse.  Until 2005, only 52 private investment projects in Africa were registered with the Chinese government.  By April 2012, this number had jumped to 923 and Chinese numbers are significantly lower than similar data provided by African countries.

Chinese private investment projects are concentrated in manufacturing (36 percent) and services (22 percent).  State-owned companies have focused on construction (35 percent) and resource extraction (25 percent).