Abstract Seven 2011-2012

GLOBAL

DEVELOPMENT STUDIES

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Volume Six Winter-Spring 2011-2012 Numbers 3-4.

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COMPETITION FOR DEVELOPMENT: CHINESE TELECOMMUNICATION COMPANIES IN AFRICA

Daouda Cissé

Center for Chinese Studies

Stellenbosch University

South Africa

Published online: February 10, 2017

ABSTRACT

Following China’s “go out” policy which promotes Chinese companies (state owned enterprises and private companies) to venture abroad, China’s engagement in Africa has generated important investments in different sectors, including infrastructure, mining, oil and copper. Chinese investment has also been directed to the service sector. Africa’s telecom industry is currently one of the thriving growth markets in the world for telecom investors. Africa has a large number of mobile handsets users and an apparent willingness of African governments to develop telecom networks in their respective country. Mobile phone technology provides access to rural areas previously not covered by landlines. A wide network coverage attracted more telecom services providers and equipment manufacturers to the continent. In the framework of Chinese investments in Africa, the analysis will focus on Chinese multinational telecommunication companies’ investments and operations in Africa. It will examine the two Chinese giant telecom companies’ (ZTE and Huawei) presence in Africa. The article will also explore the effects of China’s “go out” policy strategies on Chinese multinational telecom companies, Africa’s telecom industry including mobile phone business, Chinese telecom companies entry strategies in African markets, their management and organization methods, and their implications for Africa countries.