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Home arrow Business arrow Chinese in Africa: New arrivals thrive, even in the toughest conditions
Chinese in Africa: New arrivals thrive, even in the toughest conditions PDF Print E-mail
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Friday, 25 January 2008
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chinatown.jpgWhen Mo Haipeng set out to make his fortune in Africa, he staked everything on a pair of plastic sandals. Judging by the frenetic activity at his shoe shop in Freetown, Sierra Leone’s capital, he made a wise choice.

Women traders rifle with manic abandon through boxes of China-made footwear before sauntering outside to sell their prizes in the city’s chaotic streets. Presiding over the frenzy, Mr Haipeng haggles by holding up fingers to make up for his almost total lack of English, pausing only to light his latest cigarette.

While spending six days a week flogging slippers in the sweltering din of Freetown’s Regent Road may not be everybody’s idea of heaven, Mr Haipeng, 40, says it certainly beats his old job in a bean curd factory in Shanghai. “I didn’t go to college, I didn’t go to high school, I used to work for other people,” he says, as his wife bustles around with armfuls of yet more shoes. “Now I’m the boss.”

Mr Haipeng could be speaking for thousands of Chinese entrepreneurs who have abandoned the crushing competition in China’s big cities to carve niches in Africa’s untapped markets. But while many have tried their luck in more advanced economies in countries such as Kenya, Nigeria or Ghana, Mr Haipeng’s venture into Sierra Leone shows the new arrivals are succeeding even in the toughest conditions.

Emerging from a decade of civil war that ended in 2002, Sierra Leone ranks on United Nations indicators as the world’s second-poorest country, plagued by power shortages, unemployment and a risk of unrest that would be enough to send most retailers packing. But, armed with containers of extremely cheap footwear churned out by China’s factories, Mr Haipeng has turned the poverty to his advantage. He sells brand new products to hawkers who used to rely on imports of second-hand shoes from the US – known locally as “junk” – winning friends into the bargain. “The Chinese have helped me to build up my business,” says Ibrahim Bashiru, a young hawker who came in to replenish his stock. “I give thanks and praise to God for that.”

Sierra Leone’s Chinese community, which once consisted largely of workers sent to labour on aid projects such as a sports stadium and government offices in the 1980s, dwindled to almost nothing during the war. But their numbers have since recovered to perhaps 400 to 500 people, many of whom work for Chinese state companies that have taken over hotels, a sugar plantation, and are repairing a hydroelectric dam. The Henan Guoji Industry and Development Corporation has set up a factory at an old railway yard in Freetown to make foam, tiles and paints. Slogans such as “Punctuality is the soul of business” and “Put Your Shoulder to the Wheel” adorn the walls in foot-high letters, creating a more austere atmosphere than Mr Haipeng’s boutique. While individual entrepreneurs are still a minority in Freetown, their numbers are growing. Several other Chinese shoe shops have opened up since Mr Haipeng took over Shun Da shoes in 2004, while restaurants and hotels are expanding.

But business has not always been easy. Mr Haipeng’s first consignment from China was the wrong size for the average Sierra Leonean foot, and no one liked the designs.

“This year I know much more about the market, and I know which kind of shoes the local people like.” However, unlike Lebanese traders who have settled in Sierra Leone for generations, Mr Haipeng does not plan to stick around. “I don’t like it here, but I want to make money,” he says. “I’ll do business for maybe five or 10 years, then I’ll go back to China.”

FT.com / Reports - Chinese in Africa: New arrivals thrive, even in the toughest conditions






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Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved.

 

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