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AEGIS European Conference on African Studies
11 - 14 July 2007
African Studies Centre, Leiden, The Netherlands
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Chinese 'strategic' investments in the agricultural sector in Tanzania - trends and prospects
| Panel |
76. Invited AEGIS panel: The role of China and India in Africa
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| Paper ID | 556 |
| Author(s) |
Hansen, Anders Bastholm
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| Paper |
No paper submitted
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| Abstract | The study of Sino-African relations and the multitude of political and economic aspects it comprises has never been more relevant in the field of African studies than it is today. The remarkably increased level of Chinese political and economic engagement in Africa is seen by many Africanist scholars as one of the most significant developments on the continent today.
Although there cannot be much doubt about the significance of the recent developments in this field, it is still a widely ‘under-researched’ field. The amount of literature on the subject is still considerably limited, and the literature that exists is predominantly of a ‘macro-scale’ character, providing general analysis. Studies on the ‘meso’ and ‘micro’ scale of specific aspects are still few, which causes a serious lack of more precise and detailed information on the character and consequences of the Chinese engagement.
Inspired by the recent enlargement of Chinese involvement in Africa, and by the considerable lack of studies on this field, this study seeks to clarify one particular aspect of the complex Chinese-African encounter. The object of analysis is Chinese investments in the agricultural sector in Africa in general, and in Tanzania in particular.
Chinese investments in Africa tend to have a ‘strategic edge’ - they tend to serve the interests of the Chinese state. The bulk of Chinese investments in Africa are influenced by the Chinese state, mostly through some level of state-ownership. This is particularly evident in the extractive sectors such as oil and other natural resources. But the strategic element is also present in the agricultural sector, where Chinese state-owned companies invest in order to secure the supply of agricultural products to meet the increasing demand of the booming Chinese economy.
The study will comprise a field-study in Tanzania. This field-study will be used to retrieve information about the extent and volume and the impacts of Chinese investments in the agricultural sector. The field-study will be carried out in April and May 2007 and will therefore deliver up to date information on this particular aspect of Chinese involvement in Africa. The study will delve into the characteristics of the investments - how they are integrated into the ‘commodity chain’ of different products and how the investment strategies and business practices of the Chinese firms differ from those of other investors. Simultaneously it is the objective to assess the impacts and consequences of the Chinese investments in the agricultural sector and whether the growing Chinese involvement on this particular area might be a beneficial aspect of the Chinese African encounter.
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