How a Chinese Shoe Factory Taught Africans Punctuality on the Job

Chinese companies and entrepreneurs have long been involved in Africa, playing a significant role in addressing infrastructure challenges across the continent, with Angola standing out as a prime example.

Angola, rich in oil resources, endured a prolonged civil war following the 1970s. After the war ended in 2002, the Angolan government sought to rebuild the nation. Initially, they turned to the International Monetary Fund (IMF) for financial aid, hoping that developed nations and international organizations would step in. However, the IMF and several Western countries imposed stringent conditions, requiring Angola to adhere to their rules, submit to oversight, and ensure fiscal transparency before receiving any funding. These conditions posed a significant challenge for the Angolan government at the time.

In 2004, Angola turned to China, securing a $2 billion agreement with the Export-Import Bank of China, using its oil as collateral. This agreement allowed Angola to utilize credit lines to contract Chinese companies for infrastructure projects, with payments made directly to Chinese firms upon completion. While Western commercial banks offered similar deals, the Chinese bank provided favorable interest rates and a repayment period extending over 20 years.

This agreement resulted in a win-win situation, marking a resounding success. Angola gained crucial funds for national reconstruction and saw the development of essential infrastructure, including ports, railways, roads, and schools. Meanwhile, Chinese companies gained access to the Angolan market.

Roque Santeiro, once Africa’s largest trading market, was notorious for its chaotic and hazardous conditions. Today, the market has been completely transformed, and Luanda, Angola’s capital, boasts modern high-rises and roads, earning comparisons to Singapore.

Luanda, capital of Angola. Located on the Atlantic coast of northern Angola, it is the country’s largest city and one of its busiest seaports.

A professor at an Angolan university noted that this agreement allowed ordinary Angolans to see, for the first time, their country’s oil revenue being used to improve their lives.

The early Chinese entrepreneurs who ventured into Africa took significant risks. Roque Santeiro was once a dangerous place, rife with arms and drug trafficking. Yet, Chinese merchants conducted business in this perilous environment.

One Chinese businessman opened a store in the Democratic Republic of Congo, where security was so poor that the store had to be equipped with iron mesh to separate staff from customers. In times of danger, the staff could lower the mesh for protection.

This store owner had originally run a small commodities business in China but bought a plane ticket to Africa to explore new markets. Lacking proficiency in English or French, he relied on a calculator and hired a local translator to communicate with clients. Due to Africa’s limited supply of goods, Chinese imports, ranging from decoration materials to clothing and stationery, became highly sought after.

As Chinese businesses became more familiar with the African market, they recognized the continent’s industrial potential and identified market gaps and opportunities. They began investing in local manufacturing, establishing production facilities in Africa.

One notable example is the Viju Milk beverage in Nigeria. While it appears to be a local African product, it is actually produced by a Chinese company. Initially, the company imported food and beverages from China but soon realized that Nigerian households had a particular fondness for a type of lactic acid beverage. The company developed a special yogurt drink for local consumers, incorporating popular local fruit flavors. The drink became especially popular among children, leading to significant investments in its production by both Chinese and local Nigerian companies. Today, Viju Milk is a prominent category in Nigerian supermarkets.

Viju Milk is hosting a Children’s Day event on June 1st, offering free beverages to attendees.

Another example is the Sino-Ethiopian joint pharmaceutical venture. In 1991, a Chinese pharmaceutical company appointed an Ethiopian businesswoman, Zaf Tsadik, as its sales agent in East Africa. Over the next decade, as sales grew, the Chinese company decided to establish a factory in Ethiopia. Zaf, as the local representative, signed a joint venture agreement with the company, which surprisingly granted her a 30% stake. The Chinese manufacturer had developed deep trust in Zaf over the years.

By 2015, the Sino-Ethiopian pharmaceutical plant became the first and only capsule manufacturing facility south of the Sahara. Its market expanded beyond Ethiopia to include Sudan, Kenya, and other countries, making it a key pharmaceutical player in the region.

Chinese companies also played a crucial role in improving production efficiency in African factories, which had struggled due to outdated operational models. Over time, mutual understanding and trust developed between Chinese and African partners in both work and daily life.

A Chinese manager in Tanzania explained how the factory initially paid workers a fixed monthly salary. Later, he introduced a bonus system and optimized work assignments, resulting in a noticeable increase in worker motivation and efficiency.

A Tanzanian woman is working in a factory invested by China.

In Tanzania, labor unions, once seen as obstacles to reform, have evolved in their approach. Instead of demanding direct wage increases, unions proposed in 2014 that workers take on more tasks to boost income.

A similar trend is observed in Ethiopia, where the Huajian Shoe Factory, established by a Chinese private enterprise in 2011, emphasizes efficiency and discipline. Ethiopia’s newly established private factories are seeing similar changes. In 2011, the Huajian Shoe Factory, a Chinese private enterprise, set up a facility in Ethiopia to manufacture products for major Western brands, demanding high standards of efficiency and discipline. New workers undergo a week-long training, which they view as a fun, physical exercise, chanting commands like “turn right, turn left, attention, rest” in Chinese. To address punctuality issues, the factory provided buses and encouraged timely arrivals, leading to improved adherence to work schedules.

Thanks to the efforts of these entrepreneurs and companies, China-Africa trade has grown 20 to 30 times over the past two decades, surpassing the combined trade volumes between Africa and the United States, Japan, France, and the United Kingdom.

Through this collaboration, China has gained a deeper understanding of local cultures and customs. In many parts of Africa, tribal chiefs hold significant influence, particularly in rural or agricultural projects. Recognizing this, Chinese companies have sought their consent and shown respect for their cultural practices when acquiring land or establishing farms.

Chinese Company Partners with Local Chieftains

When providing technical assistance to Africa, China has also adapted to local conditions. For instance, while China has extensive experience in greenhouse vegetable farming, the high costs of greenhouses and utilities in Africa made it difficult for local farmers to recoup their investments. Chinese companies adapted their approach, implementing more suitable business models for the local context.

In Zambia and Malawi, a Chinese company, recognizing the financial constraints of local farmers, provided cotton seeds and pesticides while sending technicians to teach farming techniques. The company later purchased the harvested cotton, deducting the cost of seeds from the payment. This model extended the industrial chain, from cotton ginning to oil extraction and textile production, providing additional income sources for farmers.

As Africa continues to observe and learn from various countries, it is charting its own path to development. For example, in 2012, Nigeria hosted a tri-city exchange event with China and the United States, revitalizing local healthcare centers to provide safe and convenient services for pregnant women. Chinese and American doctors demonstrated new equipment and techniques, training nearly 200 doctors and 150 nurses and health workers.

Following the training, Nigerian doctors traveled to hospitals in Xiangyang, China, for laparoscopic training, where they could engage in hands-on practice, in contrast to the theoretical training provided in the U.S. Chinese doctors were also keen to visit Nigeria, fostering mutual understanding and cultural exchange. This grassroots exchange has continued for nearly a decade since 2012.

Another example is the development of special economic zones (SEZs). Africa has shown a keen interest in China’s successful SEZ model but has also tailored it to local needs. In 2009, Chinese investors established the Eastern Industrial Park in Ethiopia. By 2013, the Ethiopian government invited Chinese experts to design a special zone plan. However, the Prime Minister’s special advisor, Arkebe, found the plan unsatisfactory and unsuitable for Ethiopia. Taking matters into his own hands, Arkebe traveled to China on a private passport, visiting numerous industrial parks in Wuhan, Suzhou, and Shenzhen, as well as in Dubai and Singapore. Based on these observations, he formulated Ethiopia’s industrial zone plan, incorporating lessons from these experiences while increasing Ethiopia’s control over the cooperation zones.

the Hawassa Industrial Park, one of Ethiopia’s largest economic zones

Over the past decade, China-Africa exchanges have spanned all levels of society, from farmers and workers to presidents and ministers, as well as entrepreneurs, scholars, and even tribal chiefs. These exchanges have fostered a deep curiosity and interest in China across the continent.

China and Africa share common aspirations and experiences in development, creating a unique momentum for cooperation. Looking ahead, we can expect these exchanges and collaborations to continue flourishing.