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VOL 6 February 2014
Guangzhou Trade Magnet
African entrepreneurs seek opportunities and make a life in south China
By Hou Weili

Felly Mwamba frowns whenever he hears people refer to his downtown Guangzhou neighborhood as “Africa Town” or more insensitively “Chocolate City.”

“We come to China just for business, and there is no need to give a special name to our community,” the 38-year-old from the Democratic Republic of the Congo (DRC) told ChinAfrica.

Mwamba is one of the growing numbers of African entrepreneurs who come to seek their fortunes in Guangzhou, the capital city of south China’s Guangdong Province. These business people mostly buy Chinese commodities, which they then export to retailers across Africa. Since March 2003, when he set up a business in the city, Mwamba has built up a decent life, and in the process has bought a house and a car back in his home town.

Data from the local government verifies that the African population forms only a fraction of foreigners in Guangzhou. According to the Entry-Exit Administration of the Guangzhou Municipal Public Security Bureau, only about 10 percent of the foreigners in Guangzhou come from Africa.

These African people are from 50 countries on the continent, according to Liu Wubin, Contingent Commander of the administration. He said that more than 2 million foreigners entered China through Guangzhou in 2012. In 2013, the number of Africans with registered residence in the city, mainly students, employees and their families, exceeded 3,000, accounting for just 9.1 percent of the total permanent foreign residents there. Nigerians make up the largest part of the African community living in Guangzhou.

Trade haven

As a pivotal trading port in China, Guangzhou has attracted entrepreneurs and traders from across the nation and the world, especially after 1957 when the first biannual China Import and Export Fair, also known as Canton Fair, was held there.

“In this trading center, I can almost get everything I want,” Mwamba said, giving an indication of why so many African traders choose this city to do business. According to the Entry-Exit Administration, Guangzhou has over 60 trading markets targeting foreign wholesalers, which are engaged in bulk purchase of comparatively inexpensive but high-quality commodities ranging from motorcycle accessories, mechanical and electronic products to clothes, shoes and daily necessities. Surrounding cities like Zhongshan and Xintang are manufacturing powerhouses when it comes to such commodities, creating an efficient supply chain to Guangzhou.

“The fundamental reason why African traders favor Guangzhou is that commodities sold here can meet the local demand in Africa, as these commodities are rarely produced in African countries,” said Gao Yaozong, Deputy Director of Guangzhou’s Bureau of Foreign Trade and Economic Cooperation. He believes it is a normal economic phenomenon that African traders are thriving in the port city. “Their coming benefits the trade prosperity of the city, and the Sino-African trade in turn,” he said.

The latest statistics by the Chinese Academy of International Trade and Economic Cooperation show that China-Africa trade in 2012 reached $198.5 billion. Against the backdrop of this booming trade and enhanced economic cooperation, trade between Guangzhou and African countries has also surged in recent years. According to Gao, from 2003 to 2012, Guangzhou’s bilateral trade with the continent increased from $460 million to $4.87 billion,

an annual growth of 29.9 percent on average. Exports from Guangzhou to Africa grew from $330 million to $2.69 billion in the same period.

Mwamba is one of the contributors to this fastgrowing figure, small but indispensable. “In Africa, we have everything, but no factories. Nearly 80 percent of local goods are made in China,” he said, adding that similar climate conditions are also an attraction.

According to Gao, on the one hand, bringing goods made in China to Africa improves local people’s livelihoods, while on the other hand, trade is the forerunner of a series of economic returns. “Trading also provides an opportunity of learning. Through doing business with foreigners, Africans get a chance to acquire improved skills and better management experience,” Gao said.

Social pressures

While fueling the trade prosperity of the city, the arrival of increasing numbers of African business people also poses a growing pressure on social management. Overstaying visas is one cause of such pressure and may become a potential threat to local safety. Some Africans, especially younger ones, come to China embracing the idea of success or nothing. “They are too poor and desperate at home and have to sell all their property, which could just be a cow and a crumbling house, and use the money to fund their business venture in China,” said Zhang Zhiwei, Deputy Chief of the Community Office of Foreigners Assistance in Dengfeng Street, where many African traders live. “However, as it is impossible to succeed in a short period, many of them opt to overstay [their visas],” he added.

“For some African people who are repatriated after their illegal identity was found, they return again with a new identity,” said Zhang.

What also makes it difficult to have exact numbers of Africans in Guangzhou is the fact that many of them are leaving the city’s high rent downtown areas to live in cheaper smaller tier cities like Foshan and Dongguan. “The management of the floating population has always been a headache,” said Liu Wubin, adding that some of these people couldn’t be traced if they are involved in some illegal activities.

Besides, as more immigrants settle in the area there should be houses, hospitals and schools provided to integrate them into the city.

“This also tests the bearing capacity of Guangzhou, which is one of the biggest cities in China,” said Liu.

Mwamba is making an effort to become part of the city by learning Chinese and making more Chinese friends. Speaking fluent Chinese and having a sound interpersonal network, he volunteered to help newly-arrived Africans to better adapt to Guangzhou by acting as a bridge to communicate with locals. “For long-term benefit of our business, we have to get familiar with local customs, culture and laws and abide by the regulations, so as to live harmoniously with local residents,” he said.

Mwamba also admits that some Africans ruined the reputation of the whole community by committing crimes like drug trafficking. “But Africa does not only consist of one country. There are bad guys and good ones in every nation. Give me some time and you will find out what I am,” he said.

For those who wish to come to China, Mwamba suggests they come prepared in terms of language, skills, capital and knowledge of local regulations. “Although Guangzhou is a developed city with plenty of opportunities, it doesn’t suit every one,” he said.

 

 

 

 

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