Building Capacity

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  Rashidat Aweda finds there are a lot of positives to her working relationship with employer Huawei. From the spacious office environment and friendly colleagues, to the consideration, respect and training the Chinese information and communications technology(ICT) solutions provider gives every employee, Aweda appreciates the growth opportunities Huawei has provided her.
  “Huawei is not only considerate to female staff like me, by putting us either in management, or in non-technical departments—where the working conditions are better than that on sites—but they also teach us to be independent and to develop ourselves for future challenges,” Aweda, a Nigerian, told Beijing Review, adding that working at Huawei has made her optimistic about the future.
  Aweda is one of the thousands of African employees in Chinese companies based in Africa. Her words are a testament to the way these companies are localizing their operations as they expand across the continent. Besides creating job opportunities for locals and training African professionals, these companies are committed to making efforts to improve business operations, the local economy and people’s livelihoods.


   patience brings success
  In most African countries, poor infrastructure is a major barrier to development. “Developing industry requires a sustained electrical supply, transportation and other basic infrastructure facilities, which are still lacking in Africa,” said Xue Xiaoming, Vice Chairman of the Nigerian Chinese Chamber of Industry and Commerce.
  Despite these challenges, Chinese companies approach the continent with a sense of adventure and determination.
  “Chinese people can crack the hardest nuts,” said Gao Xiang, General Manager of Huawei Technologies Co. Nig. Ltd. “You can find Chinese people working in the most challenging environments.”
  Huawei, a leading global ICT solutions provider, established its head office and registered Huawei Technologies Co. Nig. Ltd. in 1999. Since then, Huawei Nigeria has been committed to its Nigerian customers and enriching life through communication.
  “Huawei is now the largest ICT service provider in Africa,”s a i d G a o ,“Alcatel-Lucent and Ericsson now lag far behind us.”
  The same thing happened to the Chinese Civil Engineering Construction Corp. (CCECC) Nig. Ltd. When CCECC first set foot on the continent, German companies controlled the lion’s share of the construction trade. The company tried valiantly but struggled to gain a foothold. Decades of hard work finally paid off though, and CCECC is now the leading construction company and contractor in Nigeria.   “Our accommodation was even worse than that of the locals,” Li Qiang, General Manager of China Road and Bridge Corp. (CRBC) in Kenya, told Beijing Review, recalling the harsh working and living conditions when the company first arrived on the continent.
  Li attributes the current prosperity of Chinese companies in Africa to the sustained growth of China’s economy and the strategic partnership between the two regions.“Previously, the biggest bottleneck for CRBC abroad was a lack of money and opportunities for cooperation. These are no longer problems as Sino-African economic and trade cooperation is deepening, especially under the framework of the Forum on China-Africa Cooperation (FOCAC),” Li added.
  At the Fifth Ministerial Conference of the FOCAC held from July 19 to 20, 2012, China pledged to provide $20 billion of credit to African countries to assist them in developing infrastructure, agriculture, manufacturing, as well as small and medium-sized enterprises.
   Making a difference
  Changes brought by Chinese companies in Africa are having a positive effect on locals.“It [Huawei] provides innovative solutions to millions of Nigerians. Its partnership with all operators in Nigeria and government agencies improves communication systems and provides managed services in my country,” said Funso Adebayo, a local Huawei employee.
  Olusegun Obasanjo, former President of Nigeria, was amazed to learn that Huawei is a privately owned Chinese company. “The company has made extraordinary contributions to the establishment of the communication network of Nigeria,” he said.
  Besides ICT companies like Huawei, Chinese construction companies are building roads, railways and bridges to fill the transportation gap in many African countries. In Kenya, a $13.8-billion railway project that will run from the busy port city of Mombasa to the capital Nairobi is underway. Construction began on November 28, 2013, and the CRBC expects to complete the project by 2017, which will dramatically increase trade, boosting Kenya’s position as a regional economic powerhouse. The rail line will extend to Uganda and then potentially connect with proposed lines to Rwanda and South Sudan.
  “It will most definitely transform the course of development not just for Kenya, but the whole region in East Africa,” President Uhuru Kenyatta said at the ground-breaking ceremony for the project, adding that East Africa will become a competitive investment destination because of the project.   With the new lines, train trips will be cut from 12 hours to around four. Rail transport is of particular importance because many regional roads are in a poor state of repair and also suffer from congestion.
   Localizing business
  Local employees play a vital role in building these projects. Years of experience in Africa have informed Chinese companies that localization is the only way to achieve sustainable development. “Most Chinese staff are young and will only work in Africa for three to five years, 10 at the most, as they have family in their motherland.” Li said, “Locals are permanent, and as long as the jobs can be done by locals, we will employ them.” Nearly 95 percent of the company’s employees are locals, with some working there as long as 27 years.
  With unemployment rates increasing in many African regions, threatening social stability, the trend of hiring local staff at foreigninvested companies is welcome relief.
  As Chinese companies based in Africa become more established, they are capable of localizing their business to employ and train more locals. “Directors of Chinese enterprises eyeing overseas markets have realized the importance of adapting to local situations. They are capable of and willing to shoulder more responsibilities,” said Liu Guangyuan, China’s Ambassador to Kenya.
  About 65 percent of the 4,000 employees of Huawei’s projects in Africa are recruited locally and about 10, 000 jobs are created indirectly by the company, said Gao.
  An urban railway project in Abuja, Nigeria, launched on July 23, 2013, employs more than 2,000 locals, with only 80 Chinese staff. CCECC, the company spearheading the project, estimates that when the project is completed, more than 3,000 locals will have been recruited to operate and maintain the railway.
  It is estimated that CCECC’s registered local employees in Nigeria had reached 10,500 by the end of 2012, including management and technical positions.
  To help local staff master the necessary skills and train local ICT professionals, Huawei took the lead in establishing a training center in Abuja, Nigeria in 2006, where its workers can receive systematic ICT training. “The center can accommodate more than 2,000 trainees annually,” said Gao.
  Funso Adebayo, a Nigerian worker at Huawei, benefits from the company’s vocational training platform. “Huawei standardizes our procedures according to industry standards and develops staff on the job through training,”he said.   In addition, some are sent to China to study R&D. “The training makes it possible for local employees to become qualified experts both in technology and management,” said Gao.
  CCECC’s training center in the IDU Industrial Park has become an incubator for senior man- agement staff, mechanical technicians and operators. The center trains about 100 locals every month.
  “Working in a Chinese company helps me discover myself and realize my self-improvement. With the skills learned and the experience gained here, I have become more confident,” said Aweda.
   Socially responsible
  Besides improving local livelihoods through business operations, Chinese companies can be found on site whenever there are disasters or emergencies.
  When riots erupted in Nigeria at the end of 2012, the country’s operating network was severely damaged. Technicians from Huawei Nigeria worked around the clock to help fix all equipment and maintain network operations. “We restored the whole network in just 10 days and provided a stable network for the recovery of people’s normal life,” said Gao.
  In 2011, people in Oyo State, Nigeria, suffered from a deadly storm that left many locals homeless and in danger. CCECC Nig. Ltd. dispatched more than 30 staff members to help with rescue operations. The staff managed to repair the road and evacuate the locals after four days of tireless effort.
  Chinese companies based in Africa have always put social responsibility at the forefront of their corporate culture and development strategy. They also help orphans, donate to schools, sponsor community activities, drill wells and try to contribute to the social fabric whenever possible.
   Challenges
  Despite what they have done in regards to corporate social responsibility (CSR), Chinese companies are frequently accused of stealing local jobs and business opportunities by some Western media.
  “Among the more than 2,000 Chinese enterprises doing business in Africa, there are large state-owned ones, small private companies and self-employed entrepreneurs. Some of the latter two are not able to properly understand CSR and cause some conflicts with local people,”said Zhang Zhongxiang, Deputy Director of the Department of West Asian and African Studies of the Shanghai Institute for International Studies.
  China’s Foreign Ministry spokeswoman Jiang Yu noted that Chinese enterprises have created nearly 350,000 jobs for Africans.“Reasons for questioning Sino-African cooperation include inaccurate and one-sided understandings of China’s policy toward Africa, as well as overstating the wrongdoings of certain individual enterprises,” she said, adding that China promotes economic and trade relations with African countries on the grounds of equality, common development and mutual benefit.   The Chinese Government is also busy improving regulation of Chinese business operations in Africa. As early as 2008, the State Council, China’s cabinet, issued regulations requiring Chinese contractors to uphold business integrity, strictly follow local customs, laws and regulations, protect the local environment, and promote local economies when doing business abroad.
  To better develop in Africa, Li suggested Chinese enterprises actively adapt to the local culture and maintain a good reputation in the community. “When you are small, nobody cares,” he said. “When an enterprise grows big, more attention and even criticism will come. It’s natural.”
  He Wenping, Director of African Studies at the Institute of Western Asian and African Studies with the Chinese Academy of Social Sciences, said Chinese people and enterprises are used to working quietly, seldom “blowing their own trumpets about their achievements.”They don’t have a sense of collecting facts and data on what they have done to the well-being of locals, and don’t communicate that in an appropriate way. “When criticism comes, they don’t even try to explain and defend themselves. This must be changed,” said He.
  Change takes time and major Chinese enterprises based in Africa are quickly learning the importance of CSR. Aweda is proud that her employer, Huawei Nigeria, has made such great strides in this regard.
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