China in Botswana: Economic Memories and Blessings

Seminar Paper, 2013

10 Pages, Grade: none



The world has been held at ransom by an intricate and detestable system conceived and propagated by the West. China seeks to free the world from that system as well as give them back their dignity and capability to sustain themselves. Moreover interestingly, the past three decades have been a critical era for Chinese people to seek harmonious, scientific and sustainable development at home and strengthen cooperation and embrace globalization with the outside world. Botswana, as is with other African countries, has the gratitude to count China as one of its friends in the global village. The year 2013 marks the 38th anniversary of the establishment of diplomatic relations between the People's Republic of China and the Republic of Botswana. These bilateral ties have witnessed sustained, rapid and sound development thanks to the joint efforts of both sides. Based on the principles of equality and mutual benefit, respect and trust, especially under the framework of the Forum on China-Africa Cooperation known as FOCAC, China and Botswana have fruitful cooperation on economy, trade, human resource development, cultural exchanges and coordination in international arena. This study looks into this great relationship, and follow the road that leads into the future. It suffices the exchanges on the political level lay a solid foundation for economic relationship progresses; leaders of both countries attach great importance to the exchanges of development experience and views on international affairs.


" The potential in economic cooperation is enormous"- Former Botswana Vice President Merafhe

This paper seeks to analyze China’s investment mainly OFDI, in Botswana and vice versa. Outward foreign direct investment is FDI a country carries out in a given host nation.[i] China’s OFDI is spread across the world and in Botswana since the diplomatic relations establishment in 1975, it has taken the form of manufacturing and construction sectors.[ii] This may be the building of airports, schools, dams…inception of garment and electronics manufacturing industries and to mention but a few. It should be borne in mind that most Chinese companies doing OFDI are SOEs (State Owned Enterprises). During the past 63 years since her establishment in 1949, China has made arduous efforts to explore a development road designed for her own needs and suitable to her own national conditions, which was finally summed up to the policy of reform and opening-up in 1978. Starting from 1979 when China virtually had no OFDI, it started the open door policy and accumulated tens of billions of US$ in outward foreign direct investment (OFDI).

After more than 25 years of economic reform, China has become one of the most important destinations for international direct investment and has been rapidly becoming an important source of OFDI. There are many countries in the OFDI business or stratum; but China’s outstanding feature is that in 2006 it was ranked the third largest developing country with OFDI after Hong Kong and Brazil.[iii] What is ironic is that Hong Kong is now a Chinese Special Administrative Region (SAR) and yet the largest host of mainland OFDI.[iv] In addition, the two countries have similar characteristics: they are two fast growing economies and have embarked on the same task of developing their economies and improving the lives of their people. They are highly complementary in terms of economic and trade cooperation. China exports various technologies and manufactures that fit the Botswana market at very reasonable price. However, China and Botswana are different in terms of political systems, economic development modes; culture e.t.c. Despite, the relationship is bound to benefit Botswana as China’s economy, with a registered 8 percent annual average economic growth, has long been a driving force for the world's economic development. The two countries recently signed an agreement on economic and technical cooperation that has provided over P10 million in grants to finance development projects.[v] Within 60 years, China has successfully turned from an impoverished country into one of the world's largest economies, and Botswana hopes to follow the same path.


[i] This definition was deductively conjured from the tone of the succeeding reference material.

[ii] OECD Investment News, “China’s Outward Foreign Direct Investment”, March 2008, Issue #6

[iii] Kolstad and Wiig, “What Determines Chinese Outward FDI?”, CMI Working Paper, 2009

[iv] Ibid, same authors, same paper

[v] (19 June 2009, BOPA)

Excerpt out of 10 pages


China in Botswana: Economic Memories and Blessings
Xiamen University  (Centre of South East Asian Studies)
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ISBN (Book)
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Botswana, China, International relations, Africa
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Keorapetse Mmoloki Gabatlhaolwe (Author), 2013, China in Botswana: Economic Memories and Blessings, Munich, GRIN Verlag,


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