1 Evaluating China’s FOCAC commitments to Africa and mapping the way ahead A report by the Centre for Chinese Studies Prepared for the Rockefeller Foundation, January 2010 © 2009 Centre for Chinese Studies, Un The findings, interpretations, and conclusions expressed therein are those of the authors and do not necessarily reflect the views of the Rockefeller Foundation. © 2010 Centre for Chinese Studies, University of Stellenbosch; All rights reserved i Acknowledgements The research team comprising of Tracy Hon, Johanna Jansson, Professor Garth Shelton, Dr. Liu Haifang, Christopher Burke and Carine Kiala would like to thank: The CCS team: Dr. Martyn Davies, Hayley Herman, Elizabeth Newman, Hannah Edinger, Tebogo Lefifi, Meryl Burgess, Matthew McDonald, Sanne Mars-van der Lugt, Anneke Kamphuis, Flore Pallardy, Herman Wiid and Bronwyn Grobler; the NEPAD Business Foundation; Africa Matters Ltd; João Feijó, Amb Philip Idro, Amb Charles Sanga, Samuel Nguiffo, Johanna Bergman-Lodin, as well as friends and colleagues in Angola, Botswana, China, the DRC, Mozambique, Tanzania and Uganda for all their assistance and advice; The Chinese, African and other government officials, academics, NGO community representatives as well as private sector representatives with whom the research team met in-country for their generosity and frankness in sharing invaluable insights in the interviews; The Trade Law Centre for Southern Africa (TRALAC), Stellenbosch, for providing the World Trade Atlas data; The Rockefeller Foundation for kindly funding the research and providing advice and support. Cover picture courtesy of China Chas: Beijing during the 2006 FOCAC Summit. Layout by Johanna Jansson © 2010 Centre for Chinese Studies, University of Stellenbosch; All rights reserved ii Contents ACKNOWLEDGEMENTS ----------------------------------------------------------------------------- I CONTENTS ----------------------------------------------------------------------------------------------- II LIST OF ACRONYMS ------------------------------------------------------------------------------ VIII LIST OF FIGURES ----------------------------------------------------------------------------------- XIII EXECUTIVE SUMMARY -------------------------------------------------------------------------- XIV 1. INTRODUCTION ------------------------------------------------------------------------------------- 1 1.1 Structure of the Report ---------------------------------------------------------------------------------------------- 2 1.2 Research Methodology ---------------------------------------------------------------------------------------------- 2 2. BACKGROUND -------------------------------------------------------------------------------------- 4 2.1 Conceptual remarks: The role of the FOCAC meetings ------------------------------------------------ 16 3. ANGOLA --------------------------------------------------------------------------------------------- 17 3.1 Introducing Sino-Angolan Relations -------------------------------------------------------------------------- 17 3.2 Evaluating the Beijing Action Plan: Political Cooperation --------------------------------------------- 18 3.3 Evaluating the Beijing Action Plan: Economic Cooperation ------------------------------------------ 19 3.3.1 Agriculture ------------------------------------------------------------------------------------------------------------ 19 3.3.2 Investment and Business Cooperation ------------------------------------------------------------------------ 21 3.3.3 Trade ------------------------------------------------------------------------------------------------------------------ 23 3.3.4 Infrastructure Development -------------------------------------------------------------------------------------- 27 3.3.5 Cooperation in Energy and Resources------------------------------------------------------------------------ 32 3.3.6 Cooperation in Science and Technology, Information, Air and Maritime Transport ---------------- 33 3.4 Evaluating the Beijing Action Plan: Cooperation in Social Development ------------------------ 33 3.4.1 Development Assistance and Debt Relief -------------------------------------------------------------------- 34 3.4.2 Human Resource Development -------------------------------------------------------------------------------- 35 3.4.3 Education ------------------------------------------------------------------------------------------------------------- 35 3.4.4 Medical Care and Public Health -------------------------------------------------------------------------------- 36 3.5 Political, Social and Economic Impact of FOCAC process -------------------------------------------- 37 3.5.1 Cementing Sino-Angolan Relations ---------------------------------------------------------------------------- 37 3.5.2 Visible service delivery of infrastructure ---------------------------------------------------------------------- 38 © 2010 Centre for Chinese Studies, University of Stellenbosch; All rights reserved iii 3.5.3 Mounting traffic at logistical points cause bottlenecks ----------------------------------------------------- 38 3.5.4 The implications of Chinese expatriates for Angola‟s Human Resource ----------------------------- 38 3.5.5 Cynicism over Sino-Angolan relations------------------------------------------------------------------------- 39 3.6 Recommendations for Angolan stakeholders ------------------------------------------------------------- 39 3.6.1 Increase employment of locals on projects contracted to Chinese companies --------------------- 40 3.6.2 Develop local competence in Mandarin Chinese ----------------------------------------------------------- 41 3.6.3 Build medical expertise for combating malaria -------------------------------------------------------------- 41 3.6.4 Boost manufacturing sector with Sino-Angolan joint ventures ------------------------------------------ 41 3.6.5 Raise cultural awareness to encourage mutual understanding ----------------------------------------- 42 4. THE DEMOCRATIC REPUBLIC OF CONGO (DRC) ------------------------------------ 43 4.1 Introducing Sino-Congolese relations ----------------------------------------------------------------------- 43 4.2 Evaluating the Beijing Action Plan: Political Cooperation --------------------------------------------- 44 4.3 Evaluating the Beijing Action Plan: Economic Cooperation ------------------------------------------ 46 4.3.1 Agriculture ------------------------------------------------------------------------------------------------------------ 46 4.3.2 Investment and business cooperation ------------------------------------------------------------------------- 48 4.3.3 Trade ------------------------------------------------------------------------------------------------------------------ 49 4.3.4 Finance --------------------------------------------------------------------------------------------------------------- 52 4.3.5 Infrastructure development --------------------------------------------------------------------------------------- 52 4.3.6 Energy and Resources -------------------------------------------------------------------------------------------- 57 4.4 Evaluating the Beijing Action Plan: Cooperation in Social Development ------------------------ 59 4.4.1 Development assistance ------------------------------------------------------------------------------------------ 59 4.4.2 Human Resource development --------------------------------------------------------------------------------- 60 4.4.3 Education ------------------------------------------------------------------------------------------------------------- 60 4.4.4 Medical care and public health ---------------------------------------------------------------------------------- 61 4.5 Political, social and economic impact of FOCAC --------------------------------------------------------- 62 4.6 Recommendations for Congolese stakeholders ---------------------------------------------------------- 64 4.6.1 Technology transfer should be the focus for Sino-Congolese relations ------------------------------- 64 4.6.2 Sino-Congolese collaboration on infrastructure also beneficial to health and food security ----- 65 4.6.3 Engage civil society to improve transparency --------------------------------------------------------------- 65 4.6.4 Ensure cultural and technical capacity in negotiations with China ------------------------------------- 65 4.6.5 Appoint a point person to manage Sino-Congolese health cooperation ------------------------------ 66 4.6.6 Focus HR development on managerial capacity in the health sector --------------------------------- 66 4.6.7 Katanga should engage on labour rights via Chinese intermediary ------------------------------------ 67 4.6.8 Focus Sino-Congolese health care cooperation on malaria prevention ------------------------------ 67 4.6.9 Utilise outgrower schemes for Chinese investment in oil palm production --------------------------- 67 4.7 Recommendations for Chinese stakeholders ------------------------------------------------------------- 68 4.7.1 Open a Chinese consulate in Lubumbashi ------------------------------------------------------------------- 68 4.7.2 Participate actively in efforts to coordinate development aid -------------------------------------------- 68 4.7.3 Educate Congolese students in China only in subjects not available in the DRC ------------------ 69 © 2010 Centre for Chinese Studies, University of Stellenbosch; All rights reserved iv 5. MOZAMBIQUE -------------------------------------------------------------------------------------