Botswana

"Among the worst employers everywhere"

Via Global Dispatch's Erin Conway-Smith I'm reminded of a report I've been meaning to link to for some time, but have continuously forgotten to do so - apologies! In May, the African Labour Research Network released a great 400+ page report on the labour conditions maintained by Chinese-operated firms in Africa. The report - "Chinese Investments in Africa: A Labour Perspective" - focuses especially on the cases of Angola, Botswana, Ghana, Malawi, Namibia, Nigeria, South Africa, Zambia and Zimbabwe, among the nations where the Chinese presence is most pronounced, and with which trade is particularly high.


Unfortunately for the Chinese, the findings are not at all favorable towards them. Quite generally, the report finds:

Chinese employers tend to be amongst the lowest paying in Africa when compared with other companies in the same sector. In Zambia, for example, the Chinese copper mine paid its workers 30% less than other copper mines in the country. In general, Chinese companies do not grant African workers any meaningful benefits and in some instances ignore even those that are prescribed by law. Wages above the national average were only found at those Chinese companies with a strong trade union presence. Chinese staff members enjoy significantly higher wages and more benefits than their African counterparts.


Collective bargaining hardly takes place in Chinese companies. They resort to union bashing strategies to discourage their workers from joining a trade union. In many instances, Chinese businesses were supported by host governments who defended Chinese investments against the demands of labour. Trade unions see the practices of Chinese companies as a threat to the limited social protection that unions have achieved over the years through collective bargaining.

In Namibia, for instance, some workers are paid $0.55 an hour by a Chinese company that is building the new Works and Transport Ministry headquarters - about half the legal minimum wage of $1.10 per hour for entry-level construction workers. In many cases workers don't wear safety helmets, as they are often required to pay for their own safety equipment - an investment they can ill afford. At a construction company in Malawi, too, workers had to mix cement with their bare hands. Many labour for 12 hours a day, 7 days a week. The general work day in much of Africa is 8 hours.


Of course it's difficult to expect high standards of working conditions in Chinese firms in Africa when Chinese firms in China don't fare any better. As I noted nearly a year ago, it's quite difficult to expect Chinese employers to improve labour conditions for foreign nationals working in their firms, when they have yet to do so for their own compatriots. For African states, the solution lies in legally regulating working conditions. But as the South African case demonstrates, where in place even such edicts are being circumvented. Thus while Africa stands to benefit from increased Chinese investment as such, it similarly stands to lose if such conditions continue. Change must occur, the lingering question is how.

A correction

Much is being made of the Oriental Post, Botswana's first Chinese newspaper, about which I blogged in early June. The surrounding hype is, however, somewhat misleading. Last week, France 24's The Observers ran a story on the newspaper, heralding the arrival of "Africa's first Chinese newspaper." A similar kind enthusiasm was echoed in a post on Appfrica, and picked up by Bill Easterly and Blood and Milk's Alana Shaikh on their respective Twitter pages. My, how quickly news spreads!


Yet while the Post is Botswana's first Chinese newspaper, it surely is not the first in all of Africa. The Western African United Business Weekly, a Chinese newspaper run out of Lagos, Nigeria, has been in circulation since 2005. China Express has been publishing out of Johannesburg, South Africa (a SADC member), since 1994. And there may well be additional Chinese-language papers in other parts of the continent about which we are unaware. The Chinese community has been quite active in Cape Verde since the mid-1990s, for instance; I wouldn't be surprised if they have by now established a foothold in the country's print media.


While the Oriental Post further signals China's growing fascination with the African continent - and indeed the mass migration of Chinese to Africa - it is not novel in any way (save but signaling a significant intensifying of Sino-Botswanan relations). To state otherwise is, unfortunately, quite inaccurate.

Chinese language newspaper launched in Botswana

The Oriental Post, a Chinese-language newspaper, was launched in Gaborone, Botswana last week.

Man Niles, president of the Oriental Post, said he hopes the newspaper will enable better communication between service providers, product developers and the Chinese community in Botswana. Since "most of the Chinese do not understand English and speak very little Setswana," there presently exists a rather sizable information gap and communications barrier for the Chinese resident in the country. The newspaper is the first attempt aimed at closing this gap.

China is a major actor in both the rural and urban areas in Botswana. Just this April China agreed to establish a major textile industrial park in Phakalane, and is quite eagerly investing in the country's diamond industry.

They've got the power

Last week, Botswana’s energy utility, Botswana Power Corporation, signed a contract with Chinese firms for the development of a 600 megawatts (MW) power station. The contract was concluded with China's construction consortium, China National Electric Equipment Corporation and Shenyang Blower Works Electro-Mechanics Import and Export Co. Ltd (the CNEEC-SBW Consortium), to build the Morupule B power station. With this investment, Botswana aims to expand its generating capacity and eventually reduce dependency on energy imports. 
From, Doing Business Blog