Impact of China’s cooperation: the case of Chinese garages in 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 specifically, 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 significant benefits 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 significant 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 findings based on scholarly work related to the growth of Chinese garage investments in Tanzania.