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Foreign Direct lnvestment has become a backbone for most
African countries because it has a considerable number of advantages that
include exponential economic development through technology and resource transfers,
not only that, it also creates employment, increases productivity, promotes
easy international trade and capital among other reasons. With the realization
that Foreign Direct investment brings a lot of economic developments, most
African countries are working towards attracting more of CFDI in their
countries. Africa can benefit a lot from China’s FDI and this is confirmed by
Asiedu (2004), who states that Sub-Saharan Africa (SSA) will reap more benefits
from FDI in terms of employment generation if human capital and infrastructure
are upgraded. The author also argues that Africa should diversify its
investment opportunities so that more FDI is aimed at non-primary industries.

Although CFDI has brought economic development to some
countries, various concerns have been raised by many scholars ever since the
emergence of Chinese internationalization . China has been carefully scrutinized
not only by academics and business leaders but also by press professionals
(Wang, 2010). Their main concern is why and on what basis China wants to invest
in Africa. The few studies (Wu and Cheng, 2010;Yinand Vaschetto), 2011 have
raised a considerable number of benefits of CFDI in Africa.

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   However , the
negative assertions made by various papers don’t carry much weight because
according to Wang (2010), many of them come from research papers of a low
standard and press articles from journalists.

China has contributed a lot to the Zimbabwean economy through
infrastructural development, road construction, building of the sports stadium
as well as the military schools, solar panel companies and investments in
agriculture, not only has China’s Foreign Direct Investment brought capital for
all these projects, it has also brought, employment and technology transfer
among other factors as l have mentioned above.


But why are people skeptical about
Africa-China relations? One General reading literature advice shows that the
initial criticism often comes from North America and Europe; African writers
seem to have quite different views on this topic. Kragelund (2008) writes that industrialized
countries (‘Western “) are concerned that they will lose their influence
in Africa, and that China’s existence will postpone the development in Africa.
Literature also shows that, Chinese enterprises in Africa are not only the
result of intentional or unintentional Chinese economic law The policy of
obtaining resources and markets is also the consequence of free Africa
Investment laws and policies, some of which are strongly urged by Western
donors In the past few decades, the so-called “Western retreat” (ibid
.: 164-165) has also been promoted ” Chinese advance” (Isaac, 2010:
165-169). The article by Kragelund (2008) and Isaak (2009) plus Brautigam
(2009) is an eye opener, especially in their specific case seeking further
understanding of how Chinese companies gain strength Fight in African
countries. So, Brookes and Shinn wrote:

“America and its allies … are finding that their vision of a
prosperous Africa governed by democracies that respect human rights and the
rule of law and that embrace free markets is being challenged by the escalating
Chinese influence in Africa. … China rewards its African friends with
diplomatic attention and financial and military assistance, exacerbating
existing forced dislocations of populations and abetting massive human rights
abuses in troubled countries such as Sudan and Zimbabwe. As a consequence,
Chinese support for political and economic repression in Africa counters the
liberalizing influences of Africa’s traditional European and American partners
(Brookes & Shinn, 2006).”

Foreign investors seek resources, markets, efficiency and
strategic assets in most developing countries like Zimbabwe. Companies seek investment
opportunities to solve problems such as raw materials and labor and physical
infrastructure issues or to have good political relationships with other
countries as well as other reasons. According to Aisido (2002; Secuello, 2015) low
income Southern African countries may not attract FDI, however this has been a
different case for Zimbabwe when it comes to Chinese investments.

As far as Zimbabwe is concerned, there is a lot of literature
about mining companies Comply with local labor legislation, health and safety
regulations and competition laws (Chakanya & Muchichwa, 2009; The Even
Times, 2012; Smith, 2012). There is also violation reported on environmental
laws. For example, in April 2012 or so A source reported that a Chinese company
did not follow the correct procedure The EIA and its proposed project have been
rejected (Financial Gazette, 2012).

There are also official reports explaining the cooperation
between the Chinese Companies and military forces non-compliance with Legal Law
(Dubosse, 2010, Isenman, 2005). But economically, there is economic development
in Zimbabwe. In addition, Some Chinese investors respond to some reports saying
that there is no negative impact on the economy (VOA 2012).

Despite the uncertainties in Zimbabwe, China has no
hesitation in developing economic and political relations with Zimbabwe. In
fact, despite Zimbabwe’s refusal to allow European observers to participate in
the 2002 protesters’ election and cruel handling of people under EU and U.S.
sanctions, China has invested in about 128 projects in the country from 2000 to
2012. Zimbabwe has attracted more than $ 600 million in foreign direct
investment in 2013. In addition, China is Zimbabwe’s largest trading partner in
2015 and has purchased about 27.8% of its exports. Chinese companies also
actively participate in contractor services in the telecom, construction,
irrigation and energy sectors

China’s relationship with Zimbabwe dates back from the war of
liberation. ZANU-PF leader, ZANU, has won China’s financial and military
support against Soviet republics supported by the Soviet Union. After
independence, China continued to support the Zimbabwean government to create
national hospitals and power stations and to provide 35 percent Zimbabweans
with the much needed resources in various sectors of the economy from 1980 to
1999. In 2012, China donated $ 150 million towards food for the Zimbabwean
population. China also promised to give 46million U.S. dollars to establish a
new Zimbabwean parliament. In December 2015, Zimbabwean Foreign Minister Xi Jin
called Zimbabwe’s all “climate” friends and promised billions of
dollars to energy projects and bases, including $ 1 billion in the largest
sponsorship of Zimbabwe’s farming. It is noteworthy that China has always
enjoyed the political and economic relations of Zimbabwe. enormous political
risk. For example, the sudden enforcement of the indigenization law in March
2016 endangered the interests of all foreign investors, China in particular.
Passed in 2008, the indigenization law stipulates that all “foreign and
white-owned companies with assets of more than $500,000 should cede or sell a
51-percent stake to black nationals or the country’s National Economic
Empowerment Board.” Due to complaints from foreign investors and the Zimbabwean
need to attract foreign investments, the law was never seriously enforced. But
in March 2016, the Ministry of Youth, Indigenization, and Economic Empowerment
announced that the government had decided to implement the law and required
foreign companies to submit their stake transfer plans by April 1 or face the
risk of closure. A month ago, the Zimbabwean government already closed diamond
mining companies owned by Chinese (Anjin and Jinan), Russians, South Africans,
and Emiratis, as an effort to enforce the indigenization law.


Some argue that the economic downturn, the result of
decreasing commodity prices in the last few years, led Zimbabwe to strengthen
the indigenization law. As the eighth largest diamond-producing country,
Zimbabwe enjoyed a tax income from diamond exports as high as $84 million in
2014. However, that number nosedived to $23 million in 2015, which may have
triggered the government to take over foreign mining businesses. Others have
suggested that the mounting factional war within Zanu-PF may be the culprit of
the sudden indigenization move. Patrick Zhuwao, the indigenization minister and
nephew of Mugabe, is part of Grace Mugabe’s Generation 40 or G40 faction, which
may be interested in channeling the localized businesses and profits to
buttress the faction and Mugabe himself. In contrast, the finance minister,
Patrick Chinamasa, who is associated with Vice President Mnangagwa’s faction,
tried to assure the foreign-owned financial institutions in Zimbabwe that they
were compliant and would not face censure.

On the other hand, we can also take note of China’s need to
explore africa’s resources because of the need for raw materials in Asian
markets. However, according to Carmody and Owusu the Chinese model of
development that is currently on offer is based on sophisticated technology
which is appropriate to African countries. This model allows African countries
to access the new technology at an affordable price and may result in the
domestic market improving greatly to a level where they can compete
internationally. This model is a way of increasing economic growth.


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