Document Abstract
Published:
1 Feb 2008
China-Africa economic relations: the case of Zambia
The China-Zambia interaction
The paper aims to provide information on the size, structure and significance of China-Zambia relations. It specifically studies the nature and scope of Chinese investment in Zambia, the pattern and magnitude of trade between China and Zambia.
The author concludes that the Forum on China-Africa Cooperation (FOCAC) has created new opportunities and challenges in the country’s development effort. Zambia needs to face the challenge created by the Forum on China-Africa Cooperation (FOCAC) for the benefit of the country. The opportunity being in the space provided by China to tap on its experience in acquiring technology and financial resources needed to scale up the country's development effort and move rapidly towards increased wealth creation and the achievement of the Millennium Development Goals.
Trade between China and Zambia has seen substantial increase in the recent past. China is the highest Non-Paris Club creditor to Zambia with a debt stock of US$217 million as of December 12, 2006. However, the challenge lies in turning and regulating Chinese interests in the country to the mutual benefit of both China and Zambia without endangering the country’s social-cultural heritage and environment. To achieve this, Civil Society Organisations (CSO’s) need to take an active advocacy role. Areas which need quick action include:
The author concludes that the Forum on China-Africa Cooperation (FOCAC) has created new opportunities and challenges in the country’s development effort. Zambia needs to face the challenge created by the Forum on China-Africa Cooperation (FOCAC) for the benefit of the country. The opportunity being in the space provided by China to tap on its experience in acquiring technology and financial resources needed to scale up the country's development effort and move rapidly towards increased wealth creation and the achievement of the Millennium Development Goals.
Trade between China and Zambia has seen substantial increase in the recent past. China is the highest Non-Paris Club creditor to Zambia with a debt stock of US$217 million as of December 12, 2006. However, the challenge lies in turning and regulating Chinese interests in the country to the mutual benefit of both China and Zambia without endangering the country’s social-cultural heritage and environment. To achieve this, Civil Society Organisations (CSO’s) need to take an active advocacy role. Areas which need quick action include:
- obtain appropriate rent from the exploitation of the country’s natural resources and ensure that such revenue is invested in long-term industrial development projects
- the government should re-examine the role of incentives so as not to deprive the nation of the much needed untied public revenue and streamlining the rules created by donors so as to reduce transactional costs and improve resource management
- the government development strategy ought to focus on the export of raw materials with added value while penalising export of raw materials through punitive export tax - civil society can play an advocacy role in this area
- re-formulate Zambia's bilateral cooperation with China in the context of joint and subcontracting arrangements as an effective method of enhancing skill transfer and capacity building in local industry.
