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VOL.4 June 2012
Getting the Balance Right
Sinohydro making a positive business and social impact in Africa
by Hou Weili

Socially responsible

Sinohydro Group Ltd. has been combining economic performance with a humanistic social policy since it launched its business in Africa. "Now we explore the African market not solely for economic profits, but focus on what we could bring to locals," Wang told ChinAfrica, adding that the company had built sustainable development programs to foster African countries' capacity building efforts.

Wherever available, Sinohydro will choose local suppliers and local labor. According to Wang, the ratio between local employees and Chinese employees is about 20 to one. "While giving them job offers, we attach great importance to develop their skills and management abilities," Wang said, adding that locals could be promoted to middle-level managers.

In 2009, Sinohydro sponsored 63 Angolan students to start a five-year undergraduate study on Chinese and civil engineering in Wuhan University, in central China. In Kenya, it also offered scholarships to four primary schools and four high schools in the district where Sasuma Dam was built. Ji Qi, manager of the project said the company donated stationery and footballs and volleyballs to local pupils, 12,500 shillings to high school students as a scholarship, and paid the entire tuition fee for an orphan.

With all of these efforts, the company's image has improved among African people. "Locals really like us as we indeed do something for them," Wang said.

Unfair criticisms

Chinese companies engaging in infrastructure construction in African countries have come in for criticism over concerns of environmental damage. A comment by Peter Bosshard published in Pambazuka News, a flagship publication of Fahamu, expressed such a concern.

China's investments in Africa are concentrated in sectors which are environmentally sensitive (such as oil and gas exploration, mining, hydropower and timber), and in infrastructure projects which help to facilitate environmentally sensitive investments (such as roads, railways and transmission lines).

"There are indeed some similar criticisms during the past years, especially around 2008. But facts speak louder [than words]," Wang told ChinAfrica. He explained that to date, these projects by Chinese companies didn't bring many profits to businesspeople but did improve the conditions of millions of Africans. "So the criticisms have reduced now," he added.

Liu Ranling, General Secretary of China-Africa Economic and Technological Cooperation Committee, agrees. "It is unfair to blame all the faults [environmental damage] on enterprises who construct the hydropower stations or dams like Sinohydro, as sometimes they are just carrying out what is on a blueprint," Liu said in an interview with ChinAfrica. "Many blueprints are designed by international companies, not necessarily Chinese ones. It is they who decide the location of the project," she added.

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