Business and Values: How China is Building its Position in Africa on Two Fronts

Economic Foundations – From Infrastructure to the Consumer Market

China’s engagement in Africa has long moved beyond the simple “resources for infrastructure” model. While securing oil supplies from Angola and Nigeria or cobalt from the Democratic Republic of Congo remains crucial, Beijing is conducting an economic offensive. The Belt and Road Initiative (BRI) serves as a platform for financing key infrastructure projects. A flagship example is the Mombasa-Nairobi Standard Gauge Railway in Kenya, built for $3.2 billion by the China Road and Bridge Corporation. For Kenya, this means shorter cargo transport times and economic stimulation along the route. However, as analyses by the China-Africa Research Initiative (CARI) indicate, the project was financed largely through Chinese loans, increasing the country’s external debt.

The issue of debt is the biggest source of controversy. Although Beijing rejects the “debt-trap diplomacy” theory, the case of Zambia is often cited. The country, which borrowed billions of dollars in Chinese loans, found itself on the verge of bankruptcy, forcing it to negotiate debt restructuring directly with China, raising questions about the future of its strategic assets.

Parallel to the major investments, a quiet trade expansion is underway. African markets are being flooded with Chinese products. The company Transsion, little-known in Europe, dominates the smartphone market in countries like Nigeria and Ethiopia, offering cheap devices tailored to local conditions. On one hand, this increases technology accessibility; on the other, it poses immense competition for local businesses that often cannot withstand the price pressure. According to The Africa Report, this expansion is destroying the local textile industry in many regions, unable to compete with cheap imports from Asia.

Soft Power: Investing in Minds and Hearts

While hard infrastructure changes the landscape, Chinese “soft power” works to change mindsets. The most effective and strategic tool is education. The network of Confucius Institutes, operating at universities across Africa, is more than just language schools. For instance, the Confucius Institute at the University of Nairobi is one of the oldest and most active on the continent. It promotes not only the language but also Chinese culture, history, and development model. Concurrently, a massive scholarship program is in operation. According to data from the Centre for Eastern Studies (OSW), China is one of the largest providers of scholarships for Africans, accepting tens of thousands of students annually.

These graduates return home not only with a diploma but also with a network of contacts, familiarity with Chinese standards, and often with a sympathy for the country that gave them an opportunity. They become natural ambassadors for Chinese interests in local administrations and companies. This is a long-term investment in future elites that could yield far greater returns than a single construction contract.

The second dimension is the media narrative. Channels like CGTN (China Global Television Network) offer an alternative to Western news agencies. In their broadcasts, they focus on stories about successful China-Africa cooperation and infrastructure development, often omitting issues of human rights or conflicts. This reinforces the message of China as a partner that – unlike the West – offers cooperation without “moralizing” and interference in internal affairs. This message, as analyzed by Merics (Mercator Institute for China Studies), falls on fertile ground among some African leaders frustrated with the conditionality of Western aid.

The Point of Convergence: Where Business Meets Culture

These two fronts – the economic and the cultural – are not separate. On the contrary, they intersect and reinforce each other, creating a self-perpetuating mechanism. A graduate of a Confucius Institute is an ideal candidate for a job at a Chinese company operating in Africa, reducing communication and cultural barriers. In turn, the development of logistical infrastructure, such as the aforementioned railway in Kenya, physically facilitates the market penetration of Chinese goods, which in turn change the daily consumer habits of Africans.

In factories, such as those in Ethiopian industrial parks, a clash of work cultures occurs. The Chinese model, focused on hierarchy, discipline, and long hours, is often a source of tension with local workers. Media reports, including those from the South China Morning Post, have described strikes and protests related to working conditions. On the other hand, it is also a space for exchange. Joint ventures are established, and local managers learn new management methods.

The key element binding this entire strategy together is the shared narrative of “win-win cooperation.” For China, it is a chance to diversify its economy, gain new markets, and secure international legitimacy for its institutions. For Africa – it means access to much-needed capital and infrastructure, often without – at least declaratively – the political conditions imposed by the West. The question of the true symmetry of this benefit remains open. Will an Ethiopian company become an equal partner in the supply chain for a Chinese e-commerce giant? Or will it remain merely a supplier of cheap labor? The answer to these questions will determine whether the Chinese presence transforms into lasting, inclusive development or a new form of dependency.