Africa’s biz culture not so strange for Chinese
By Chris Dalby Published: Feb 24, 2015 11:43 PM
In his article "Chinese work ethic in Africa" published recently in the Global Times, Mark Kapchanga writes convincingly about the positives that Chinese businesses have brought to Africa. More particularly, Kapchanga dwells on the benefits that young entrepreneurs in Kenya and other countries have found opportunities to profit from the flow of goods coming from China. This is a refreshing perspective which is all too lacking from many articles tackling this theme.
Many reports about Africa depict Chinese companies as neo-colonialist conquerors, utterly separate from African workers, or as economic saviors. Chinese press have countered that these are spurious allegations, stemming from Western jealousy at losing control of business interests in Africa.
The reality is somewhere in the middle. Sino-African trade has as many advantages as disadvantages and the narrative in the press has to move on. Nevertheless, I will indulge in a spot of simplification myself.
For starters, it is ludicrous to lump in the business practices of big tech firms with those of smaller import-export firms. Chinese Fortune 500 global companies have ground rules that apply to all their operations from Zhejiang to Zambia.
However, they must also adapt these ground rules to local habits. The shorter working hours of France, the longer afternoon breaks of the Mediterranean, the top-down chain of command preferred in Mexico, and the tendency to favor Japanese executives among Japanese firms are all well-known.
Sadly, the problem of many African countries is that local habits are not as well-known. Even for firms that dispatch advance teams, made up of HR, fiscal and logistical experts, to the sites of future investments in Africa, finding out about such habits is tricky.
Now, one consequence of this lack of understanding about African work ethics can be found on certain Chinese firms.
With such habits not evident, some companies have simply sought to ignore them. Problems in Zambia with diamond mines or in Angola with oil and gas do stem from a lack of effort to achieve cultural understanding.
First of all, the very concept of negotiation is vastly different. This is a difficult issue for many African businessmen to grasp, especially given some hidden rules of business deals in China.
Second, one of China's greatest advantages on the continent needs to be slightly tweaked. African governments and entrepreneurs have long welcomed the speed at which Chinese firms can bring in goods, materials and funds, once a deal is signed. While this has helped China make major inroads, a measure of caution for similar regulations would be welcome. China's manufacturing knowhow allows it to provide high-quality goods while maintaining safety standards. Any compromise of this ability will stand it in bad stead.
Finally, one aspect where Chinese companies have to improve is on local employment. Many deals inked between Chinese companies and the African public sector, especially for construction and infrastructure projects, stipulate that 70 percent of the workforce must be Chinese. The arguments that this is because Chinese labor force understand a particular working culture, are cheaper, or are willing to work longer hours may be true, but they are not sustainable in the long term.
A sustainable business is achieved by giving something back, and the more local Nigerians, Angolans or Ethiopians find a steady career path within Chinese firms, the better. This would also give rise to more African entrepreneurs that would enrich themselves, their own economies, and Chinese business partners.
Ultimately, those who believe the Chinese and African work ethics are incompatible are wrong. There are too many success stories to disprove this. But there is still a lot of room to grow.
Chris Dalby, editorial director of Mexico Business Publishing