Impact of China’s cooperation: the case of Chinese garages in Tanzania

Published date02 February 2015
DOIhttps://doi.org/10.1108/JCEFTS-01-2015-0003
Date02 February 2015
Pages27-39
AuthorGodbertha Kinyondo,Yuda Julius Chatama
Subject MatterEconomics,International economics
Impact of China’s cooperation:
the case of Chinese garages in
Tanzania
Godbertha Kinyondo and Yuda Julius Chatama
Mzumbe University, Dar es Salaam, Tanzania
Abstract
Purpose – The purpose of this paper was to investigate China’s motive for its relations with Africa.
Within that broad framework, the paper investigates China–Tanzania cooperation from an economic
and social development perspective. It analyses the status of Chinese investments and, more
specically, it focuses on the increasing numbers of Chinese garages and assesses whether they have
positive spill-over towards achievement of sustainable development.
Design/methodology/approach Case study was used; it involves an up-close, in-depth and
detailed examination of the growth of Chinese garages in Tanzania, as well as its related contextual
conditions including the overall impact of foreign direct investment (FDI) on the vehicle repair sector in
Tanzania. Scholarly works from various sources including researchers as well as authoritative reports
were consulted.
Findings – The paper shows that there is an increase in Chinese garage investment which has brought
signicant benets such as technology spill-over, increased employment albeit at low-level pay as well
as functioning as a stimulus for Tanzanian self-employment.
Practical implications A free market environment which attracts signicant FDI including
Chinese garages should be strengthened. Chinese garages should not employ Chinese when there are
Tanzanians with required expertise. Further research on the long history of relations between Tanzania
and Scandinavian countries is better for comparison.
Originality/value – The paper presents original ndings based on scholarly work related to the
growth of Chinese garage investments in Tanzania.
Keywords China–Tanzania cooperation, China investments, Chinese garage in Tanzania,
Garage investments
Paper type Conceptual paper
1. Overview of China–Africa and China–Tanzania relations
According to Mohan and Kale (2007), China–Africa contact can be divided into three
phases. The rst phase was from 1850 to 1950 of colonial labour demand called “coolie
trade”. This type of trade focused mainly on mining, plantation and railway
construction. Alongside this were small but enterprising businesses that serviced
Chinese labour markets and undertook small-scale exports. Phase 2 emerged after the
Bandung conference in 1955, whereby China began to develop ties and propose
economic, technical and military support to African countries and liberation movements
in an attempt to unite with them against other superpowers (Muekalia, 2004). China
dared Western superpowers through foreign aid to Africa, emphasized “South-South”
political relations and encouraged the political freedom movements in Africa. This was
also the period when Chinese economic reforms promoted special economic zones and
foreign direct investment (FDI).
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1754-4408.htm
Impact of
China’s
cooperation
27
Journalof Chinese Economic and
ForeignTrade Studies
Vol.8 No. 1, 2015
pp.27-39
©Emerald Group Publishing Limited
1754-4408
DOI 10.1108/JCEFTS-01-2015-0003

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