Chinese trade and investment and the forests of the Congo Basin


Book Description

Since 2000 and the implementation of China’s ‘going abroad’ policy, mainland Chinese state-owned and private companies have significantly increased their interests in the resources and investment opportunities of the Congo Basin, bringing new opportunities as well as potential social and environmental costs. This report is a synthesis of some main findings of preliminary scoping studies conducted by CIFOR and partners in Cameroon, Democratic Republic of Congo and Gabon. It focuses on how Chinese trade and investment in the forestry, mining and agricultural sectors might relate to effects on forests and forest-dependent communities in the region. All studies were conducted under the CIFOR project ‘Chinese trade and investment in Africa: Assessing and governing trade-offs to national economies, local livelihoods and forest ecosystems’, initiated in 2010. The scoping studies yielded useful results, including an increased understanding of the main trends in natural resources trade between the target countries and China, and the major land-based productive sectors targeted by Chinese investors. The studies also considered the role of national agencies tasked with promoting investment and overseeing corporate adherence to environmental and social requirements, and provided a better understanding of the informal processes surrounding investment and acquisition of land and other resources.







Chinese trade and investment and its impacts on forests


Book Description

Chinese trade and investment and its impacts on forests: A scoping study in the miombo woodlands [Chinese] 中国的贸易和投资及其对林业的影响: 对米欧波 (Miombo) 林地的概况研究 China’s diplomatic and economic presence in Africa has grown considerably in recent years. From the establishment of the Forum on China – Africa Cooperation (FOCAC) and efforts to strengthen diplomatic, cultural and economic relations with African nations, to the rapid growth in Chinese foreign direct investment (FDI) and bilateral trade, this relationship is likely to continue to play a defining role in African economies. These trends are important for African nations that see this relationship as an opportunity to catalyse much-needed investments in infrastructure and industry, to stimulate job creation and exports, and to counter-balance the historical influence of western nations. Yet a perceived lack of transparency in Sino-African diplomacy (and related lending conditionalities) and lesser concern for social and environmental impacts among Chinese investors has raised concerns about the potential risks of this emerging partnership. In the absence of strong evidence on the uniqueness of Chinese diplomatic and economic relations in specific countries in the region and related impacts, it is impossible to assess the opportunities and risks posed by China’s growing influence in the region. This report, and the wider project in which it is embedded, aims to shed light on this debate by examining the Chinese influence on the forestry sector in Congo Basin and Miombo woodland countries. Through a comparative analysis of patterns of aid, trade and investment with Chinese and other ‘development partners’, and their social, economic and environmental implications for key sectors shaping African forests (agriculture, forestry, mining), the project aims to explore the nuances behind the emerging Sino-African partnership. Towards this end, this report explores the diplomatic and economic relations between China and three miombo woodland countries (Mozambique, Zambia and Zimbabwe). Emphasis is placed on the identification of key patterns of Sino-African trade and investment in sectors of interest, as a means of identifying trends of importance to forests and exploring key themes for more in-depth research. Initial findings suggest that while Chinese aid, trade and investment are playing a significant and often defining role in the sectors of interest, the level and mode of influence – and anticipated impacts on forests – vary considerably across countries and sectors. The report also highlights the trade-offs that often accompany the activities of state and non-state, small- and large-scale operators alike.




Chinese Aid, Trade and Investment and the Forests of the Democratic Republic of Congo


Book Description

The relationship between the Democratic Republic of Congo/Zaïre (DRC) and the People's Republic of China (China) has evolved significantly during the past 40 years. From a largely strategic alliance favouring a more prominent position for China in Africa and on the world stage and symbolic development assistance in support of Mobutu's regime, it has developed into a business partnership featuring thriving bilateral commerce and increasing private investment by Chinese multinationals. During the past decade, the DRC has become the target of a number of major investments from China, especially in the mining sector, where a planned US$6 billion resources-for-infrastructure swap has sparked a great deal of controversy among global financial institutions and advocacy groups. Most of the costs of developing and rehabilitating the DRC's transportation infrastructure are covered by loans from China, as are around a quarter of the costs of building new energy infrastructure. At least one large Chinese multinational is poised to engage in large-scale development of oil palm plantations, and there is evidence that the volume of timber exports to China has been increasing rapidly. Given the great importance of conserving and sustainably managing the DRC's extensive forest ecosystems, which are vulnerable to development pressures and extractive activities, as well as the continued severe economic disadvantages experienced by most of the Congolese population, research is needed to gauge the impacts of increased trade and investment and to assess the efficacy of existing institutions in overning the related environmental and social impacts. As part of its project 'Chinese trade and investment in Africa', the CIFOR and its partners ...




Deforestation Trends in the Congo Basin


Book Description

"This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank."




Analysis of Approvals for Chinese Companies to Invest in Africa's Mining, Agriculture and Forestry Sectors


Book Description

The impacts of Chinese investment in and trade with Africa have become the subject of much speculation. CIFOR's 'Chinese trade and investment in Africa' project seeks to understand the impacts of China's role in shifting global trade flows and investment patterns on forests in 2 African eco-regions, the Congo Basin and the southern African woodlands, with a focus on sectors with potential direct impacts on forests: mining, forestry and agriculture. The lack of a comprehensive database of Chinese investments in Africa makes it difficult to build a picture and analyse trends and patterns. The analysis in this working paper draws on a database (spanning 1983 to 2010) of approvals by the Ministry of Commerce of the People's Republic of China (MOFCOM) for Chinese companies to engage in overseas investments. Records in the database indicate the companies' intent to invest overseas, but do not record actual investments that were completed. Additional sources are used to characterise trends in Chinese merger and acquisition activities in the sectors of concern in Africa. The database contains 1346 records of approvals for Chinese companies to invest in Africa from 1988 to 2010, representing 8.47% of all approvals for overseas investment awarded to Chinese companies. Before 2002, fewer than 10 approvals were made per year. After 2002, approvals grew at an annual average rate of 250%, reaching 388 in 2010. Of these, 278 approvals were for the mining, forestry and agriculture sectors, of which 128 (44%) were in the 2 eco-regions of interest to the CIFOR project. In the mining sector, there were 209 approvals, with 70% concentrated in 10 countries ...







Deforestation and forest degradation in the Congo Basin: State of knowledge, current causes and perspectives


Book Description

The Congo Basin comprises Cameroon, Central African Republic, the Democratic Republic of Congo, the Republic of Congo, Equatorial Guinea and Gabon. It covers close to 70% of the forestlands of Africa. Of the 530 million hectares in the Congo Basin, 300 million are composed of forests: 99% of these are primary or naturally regenerated forests, as opposed to plantations.




Socioecological responsibility and Chinese overseas investments


Book Description

Chinese investment in Africa has increased greatly in recent years. In Cameroon, the years following the last global financial crisis saw a boom in Chinese investments in the rubber industry, in particular in rubber estates belonging to two companies: Sud-Cameroun Hevea SA and GMG HEVECAM. These investments come from Sinochem, one of the largest Chinese state-owned multinationals, and involve the rehabilitation of existing rubber estates, as well as expansion into new areas. Since the initial investment from China, exports of rubber from Cameroon to China increased from almost none to nearly half of total rubber exports in 2011. We conducted research into the nature and extent of China’s investment in the Cameroonian rubber sector and assessed initial findings through the lens of socially responsible investments (SRI). Overall, the picture shows that the two investments are subject to a number of governance challenges, particularly in relation to land allocations.




The context of REDD+ in the Democratic Republic of Congo


Book Description

DRC has committed to reduce its emissions effectively, efficiently, and equitably from deforestation and degradation (REDD+). The country experiences complex relationships between drivers, agents, and institutions of deforestation nationally. The REDD+ policy arena is influenced by both governmental and non-governmental actors whose number have increased in the policy arena over the years; however, weak coordination among these actors remains an issue. Since 2009, the DRC has announced several reforms relating to land tenure, land-use planning and agricultural policy, to create an institutional environment that motivates the implementation of REDD+ in the DRC. By 2019, none of these reforms had materialized, due to both political changes and a lack of finance, capacity, and political will. Between 2013 and 2019, little progress has been made on REDD+ in the DRC, as a result of conflicting interests among actors both at national and decentralized levels; information asymmetry; elite capture and corruption; and the pre- and post-election situation. To date, the effectiveness of REDD+ activities in the DRC remain unclear, due to the absence of rigorous impact assessment. However, efforts can be observed on the field where there is increased number of participants to forest policy process compared to REDD+ early years; and several ongoing projects are testing policy options within and across levels. If these efforts are sustained, they can contribute in putting in place conditions to achieve REDD+ objectives.