How Chinese investment is making an impact on Zambia

Zambia in 2015 looks a lot different than a few years back. Its continued development is visible especially in the capital city Lusaka as well as the Copperbelt in areas such as Ndola and Kitwe. Although it still has a long way to go in terms of advancing infrastructure, progress can be seen especially around the capital city Lusaka where buildings and roads continue to be built at a steady pace. When you travel around Lusaka you will without a doubt see the construction of buildings whether office buildings or residential properties as well the construction of shopping malls. You will also notice that Many people have emigrated to Zambia not only from other African countries but from the US, UK and Asia. As you walk along the city of Lusaka you will not be shy of hearing the Chinese language being spoken around town. With such developments, a question most want to know the answer to is where is all this investment coming from? Why such a surge in the developments of shopping malls, roads and businesses?

To help answer the above it is important to firstly understand Zambia’s history. Colonised by the British, Zambia formerly known as Northern Rhodesia gained independence in 1964. Since becoming a democratic nation the country has witnessed up to date the leadership of 6 presidents. Each has had their fair share of praise and controversy when it comes to discussing affairs relating to the development of the nation (something you can research in your own time). Zambia’s biggest natural resource is reported to be copper, as a result mining is one of its biggest industries. Aside from copper the nation boasts rich land and ideal weather for agriculture, another big industry.

Coming back to the topic of China’s influence in Zambia, when you look back to the early 2000’s most Chinese investments in Zambia were in relation to mining. China has over the years benefited from Zambia’s rich natural resources such as copper and uranium amongst Zambia’s commodities. Copper for example has been used to fund China’s growing market in terms of facilitating the construction of industrial machinery, power generation and transmission. To name a few. As a result Chinese companies have continued to seek control of mines in Zambia which has brought some controversy. China has now become a major importer of copper on a global scale overtaking the USA in the early 2000’s. China’s continued growth has fuelled further interest in developing nations with rich resources such as Zambia and the presence of the Chinese is highly visible in 2015 Zambia. Apart from copper, Chinese investors are investing in industries such as construction and engineering both big industries in Zambia. With this has come divided opinions, some residents are against Chinese investment as they believe they are losing out on contracts which they feel they are entitled to. Others including Economist Dambisa Moyo are more in favour of Chinese investment in the country with Ms Moyo stating that Chinese investment does more good as it creates ‘jobs for locals’ which as a result creates a better livelihood for Zambians. She also pointed out that Chinese companies are getting things done ‘fast’ in Africa which has impressed many.

Another noticeable thing is that there are now more and more Chinese schools encouraging even the locals to learn the Chinese language with offers for them to study abroad in China, another attractive option from young Zambian academics. This is a fairly attractive offer as China continues to grow and be a dominant force in world development with most economic reports including Bloomberg and The Telegraph placing China within the top 3 best performing economies in the world.

With all that said it is clear China has seen a goldmine in not only Zambia but in Africa as a whole. The Chinese effect does not seem to be slowing down anytime soon as more and more Chinese investors embark on doing business in Zambia.

What do you think of China’s presence in Zambian economics?