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VOL.4 October 2012
Strategic Vision Required
Chinese enterprises in Africa need to understand local conditions to succed
by Hou Weili

Like all local officials in Africa, Veueza Kasiringua from Namibia hopes she can provide momentum for local economic development and the improvement of people's livelihood during her tenure.

"China has more than 30 years' experience in this regard that could be shared with Africa," Veueza Kasiringua, Chairperson of the Management Committee of Tsumeb Municipality in Namibia, told ChinAfrica.

The First Forum on China-Africa Local Government Cooperation held in Beijing from August 27 to 28, 2012 provided another platform for the cooperation Veueza Kasiringua mentioned. It paved the way for Chinese private enterprises to invest in African countries and to engage in more concrete and pragmatic cooperation on improving African people's livelihood.

The forum, co-hosted by the Chinese People's Association for Friendship with Foreign Countries and the United Cities and Local Governments of Africa, consisted of a summit of local governors and an economic and trade forum. About 2,000 representatives from major cities in China and Africa, NGOs as well as enterprises attended the event.

 

Seeking cooperation

It is the first platform for communication between Chinese and African local governments under the framework of the Forum on China-Africa Cooperation. "The event builds a bridge connecting thousands of African local governments and their Chinese counterparts and will intensify pragmatic cooperation in fields such as education, culture and tourism," said Veueza Kasiringua. 

She learned from the speech by Zheng Zeguang, Vice Mayor of Nanjing, that the city had gained rich experience in higher education as it has some leading universities. "We hope to learn from Nanjing in the field to promote our country's national education," she added. A country with poor education resources, Namibia has only one institution of higher learning, the University of Namibia.

With Sino-African economic ties deepening, more and more Chinese enterprises are enthusiastic about entering the African market. "For one thing, China and Africa have enjoyed a long history of friendship. And for another, most African countries are at the initial stage of industrialization, providing huge potential opportunities for enterprises," Nie Zihao, Vice Director of Market Development Department of Yantai Moon Co. Ltd., told ChinAfrica.

 

Going local

As more Chinese enterprises go to Africa, new issues like labor disputes and conflicts with local trade unions or other organizations became prominent in recent years. "Under new circumstances, Chinese enterprises should adapt themselves to the local society by changing their way of thinking and seek sustainable development in the continent," said Cheng Tao, Director of the Center for African Studies of China Foundation for International Studies.

Lu Qingcheng, Vice President of China-Africa Development Fund, gave some suggestions to Chinese enterprises investing in Africa. First, they should become familiar with the investment environment and policies in the targeted destination, including the country's politics, economy, culture, customs, religions and tax policies. Second, before starting business, enterprises should make solid and detailed investigations to find the appropriate investment field and evaluate potential risks for the business. Third, they should engage firmly with local society, helping advance social progress and improve people's livelihood.

Lu Shaye, Director of the Department of African Affairs at China's Foreign Ministry at the forum, encouraged Chinese entrepreneurs to seize opportunities and consolidate their resolve and confidence in the development of Sino-African cooperation. Meanwhile, he noted that Chinese entrepreneurs should have a strategic vision when investing in the African market, focusing not only on profit making and long-term development of the enterprise, but also the national interests and the friendly Sino-African relationship into consideration. "Entrepreneurs should bear the national image and interests in minds, as when you go abroad, you represent your country, not just an individual person," Lu Shaye said.

The event ended with a declaration and agreements on establishing friendly ties between Chinese provinces and African countries. According to the agreements, China and Africa will push for more sister cities and double their number from current 111 pairs to 220 pairs in the next five years. In the future, the forum will continue to be held every two years.

A fund will be established to forge local-level communication. The initial 10 million yuan ($1.58 million) for the fund will be used in charity activities and personnel training in African countries, scholarships for African students learning in China, and helping commerce chambers to seek business opportunities.

 

 

 

 

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