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China in Southern Africa: Challenges and Opportunities for Chinese Traders

This report by Terence McNamee of The Brenthurst Foundation presents key findings from 200 interviews in 5 countries in Southern Africa. It highlights that Africa hosts the poorest and least educated among the overseas Chinese diaspora, mainly from Fujian Province. Chinese traders are drawn to Africa due to fierce competition in China, succeeding where local firms have failed. However, relations with African communities are deteriorating, raising concerns amid growing global economic interdependencies. The report questions how new legislation will impact Chinese traders and explores the potential future scenarios for their businesses in Africa.

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China in Southern Africa: Challenges and Opportunities for Chinese Traders

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  1. THE BRENTHURST FOUNDATIONChina in Southern Africa: Bleak view from the streetTerence McNamee

  2. The Brenthurst Project • 200 interviews, 5 countries

  3. Key Findings • Africa draws the poorest and least educated of the overseas Chinese Diaspora.

  4. Key Findings • Africa has the poorest and least educated of the overseas Chinese Diaspora. • Chinese traders are in Africa because they could not make a living in China

  5. Key Findings • Africa has the poorest and least educated of the overseas Chinese Diaspora. • Chinese traders are in Africa because China has become too competitive • Chinese migrants have forged their own pathways in Africa

  6. Key Findings • Africa has the poorest and least educated of the overseas Chinese Diaspora. • Chinese traders are in Africa because China has become too competitive • Chinese migrants have forged their own pathways in Africa • More than half are from Fuijan Province

  7. Chinese traders have been successful with small businesses in Africa where local firms have failed or feared to tread

  8. Chinese traders have been successful with smalls businesses in Africa where local firms have failed or feared to tread • Business is becoming more competitive

  9. Chinese traders have been successful with smalls businesses in Africa where local firms have failed or feared to tread • Business is becoming more competitive • Relations between Chinese traders and African communities are deteriorating

  10. Africa’sGlobalisation Link Africa’sGlobalisation Link Western consumer demand Asian production & savings

  11. Responding to the rising tide of violence?

  12. A final question How will they respond to new legislation…. Will tighter regulatory frameworks make Africa a much less attractive place for Chinese traders to do business, perhaps even mark the decline of the Chinese shop? Or will the qualities exemplified by unemployed factory workers and farmers from Fuijan, who succeeded as traders in the continent’s remotest villages and toughest neighbourhoods, see them through the new legislation and enable them to continue to thrive?

  13. The END

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