The effect of the chinese system of investment on african development : case study of Zambia.
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Date
2023
Authors
Musonda, Gilbert
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
The effect of the Chinese system of investment in Africa, specifically in Zambia, is a complex issue that has elicited various opinions and perspectives. Hence, the purpose of the study is to assess the Chinese system of investment in African Development and gain a better understanding of the dynamics of Chinese investment particularly in Lusaka and Copperbelt provinces of Zambia. The study used used a mixed method approach thus involving the use of both quantitative and qualitative data in the study. Fifty (50) participants from the Chinese businesses and non-owned Chinese businesses, the University of Zambia, the Zambia Public Procurements Authority, and the Ministry of Mines were targeted in this study. Data was collected through the use of semi-structured
questionnairs and interview guides. Qunatitative data was analysised using Statistical Package for Social Sciences (SPSS) version 22 while qualitative data was analysed thematically. The study reveled that Chinese investment in local industries has proved to have a positive and negative effects to the economy. It was discoveered that the Chineses business created jobs for local people which has lead to economic growth and poverty reduction, substantial diversification
into financial services, construction, agriculture and manufacturing, technology transfer, infrastructure development as and export opportunities. On the other hand the Chinese investment has brought competitive threat to the infant but growing local firms in Zambia. The study also revealed that Chinese businesses have engaged in unfair trade practices and that majority (92%) of the Chinese businesses do not invest much in the local human resource, a few (8%) of the
businesses assist financially in the further studies of their employees mostly the Chinese busineses do involve local communities in their operations.
In conclusion, the Chinese system of investment in Zambia requires a collaborative approach between Chinese businesses, the Zambian government, and local communities to ensure that the benefits of Chinese investments are shared equitably and that negative impacts are minimized. Such an approach would help to create a win-win situation for both China and Zambia, fostering a positive and sustainable relationship between the two countries.
Description
Thesis of Master of Science In Peace Leadership and Conflict Resolution.