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China: A different donor? Perceptions of china’s role in Mozambique Sérgio Chichava.

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Presentation on theme: "China: A different donor? Perceptions of china’s role in Mozambique Sérgio Chichava."— Presentation transcript:

1 China: A different donor? Perceptions of china’s role in Mozambique Sérgio Chichava

2 Objective Discuss perceptions of Mozambican authorities regarding China’s role as donor in Mozambique.

3 Some questions Is the Mozambican government moving away from traditional donors towards China? What is the Mozambican authorities' perception of China as a new donor? Do they see China as different from traditional donors?

4 Bilateral Trade In 2002, the bilateral trade between China and Mozambique was $ 48,489 millions. In 2009, it jumped to $ 517 millions (MFAPRC 2006, CPI & China Tong Jian Investment Co., Ltd, 2010).

5 Mozambique's main exports to China Timber, Sesame, cashew nut amongst others agriculture products and some mineral resources(CPI & China Tong Jian Investment Co., Ltd, 2010). In 2008, 6,6% of Mozambican exports went to China.

6 Mozambique's main exports to China Timber, the main product export. In 2006: 90% of Mozambican Timber went to China. In 2006, Mozambique was amongst the ten larger African exporters of timber to China; In 2009, China is still the main market of Mozambican Timber.

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8 Main Mozambican imports from China Manufactured goods, primarily vehicles and parts, household appliances and articles of iron and steel (Jansson & Kiala, 2009). In 2008, 8.4% of Mozambican imports were from China. Mozambique still import more for South Africa (67%) and from Australia (11.1%) (Millennium BCP 2010).

9 Bilateral Debt After 2007’s debt relief, the debt of Mozambique with China was, in 2008, $2.9 millions.

10 Bilateral cooperation China supports Mozambique in different areas, namely in defence and security, agriculture, education, health and infra- structures.

11 Some data on Chinese Private investment in Mozambique

12 Chinese investment ( ) Tabela 1 Countries EmploymentFDI Qtd% Valor ( 10 3 ) % Others countries 207,86095% 10,612,29098% China 9,9145% 216,5242% Total 217,774100% 10,828,814100% Source: CPI

13 Distribution of Chinese investment by sector ( )

14 Tendencies of Chinese FDI Tendency to focus on mineral resources thanks to some recently announced investments in this sector, particularly on coal.

15 Aid without strings? The Mozambican perception China is willing to support projects that often are not financed by traditional donors (stadiums, palaces,...). Contrary to traditional donors: “[for example], when we say, the construction of the Attorney General building is a priority, the Chinese agree with us. (Luísa Diogo, former premier minister, February 2007). So the Chinese don’t ask if this or that project will bring development or not: This is a matter of Mozambican government.

16 Only economic strings But: “China wants natural resource as assurance” (Luísa Diogo, December 2010).

17 It leads to some problems, dead-locks and precautions Because of that, the Mozambican authorities are conscious that, at the current stage, China can’t replace the “traditional” donors, that they need both: “We must not close our eyes and forget our traditional partners. But we need cooperation with China and India also” (Luísa Diogo, Dezembro 2010).

18 Conclusions Positive impact: 1) massive aid on infra-structures brings positive effects; 2) Non-interference in definition of priority/not priority gives some “leeway” for Mozambican authorities in comparison to traditional donors;

19 Risks: Possible increase of debt on projects that only benefit the elite, that do not bring development;


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