Chinese Development Co-operation in Africa: The Case of Tembisa’s Friendship Town

The paper examines Chinese development assistance in Africa, focusing on the 'Friendship Town' housing project in Tembisa, South Africa. It details the shift in Chinese policy from ideological solidarity to a 'mutual benefit' framework and analyzes how the Tembisa project utilized a grant to build 664 housing units. The authors argue the project was a success due to community involvement, local capacity building, and the leadership of key individuals, though they note a lack of formal independent evaluation.

• Chinese development co-operation in Africa shifted from an ideological basis to a 'mutual benefit' framework in the early 1980s, emphasizing practical results, sovereignty, non-interference, and the enhancement of self-reliance.
• Contemporary Chinese economic co-operation with Africa utilizes three primary instruments: grants for social projects and technical assistance, interest-free loans for large infrastructure, and concessional (preferential) low-interest loans.
• Unlike OECD-DAC donors, China prefers 'tied aid'—using Chinese management, labor, and equipment—and avoids providing cash gifts or budget support to ensure funds are not wasted.
• The Tembisa Friendship Town project, launched as a R25 million 'gift' following South Africa's recognition of the PRC, successfully delivered 664 low-cost housing units for lower- to middle-income residents by November 16, 2001.
• The project fostered local capacity by employing local subcontractors and providing on-site training in building and business operations, enabling some local firms to grow significantly in net worth and contract value.
• A sustainable financial model was attempted by establishing the Lethabong Housing Institute (LHI) to sell units on a commercial basis and reinvest proceeds; this generated R38 million for reinvestment before the model was disrupted by a law banning council officials from business entities.
• Despite the project's perceived success, no substantive independent evaluation was conducted by either the South African or Chinese governments, limiting the systemic integration of its lessons into future projects.

APA

Alden, C., & Chen, A. Y. (2009). Chinese Development Co-operation in Africa: The Case of Tembisa’s Friendship Town. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2009/06/Occasional-Paper-30.pdf

Chicago

Alden, Chris, and Anna Ying Chen. Chinese Development Co-operation in Africa: The Case of Tembisa’s Friendship Town. South African Institute of International Affairs, 2009. https://saiia.org.za/wp-content/uploads/2009/06/Occasional-Paper-30.pdf.

Wikipedia

{{cite report |last1=Alden |first1=Chris |last2=Chen |first2=Anna Ying |title=Chinese Development Co-operation in Africa: The Case of Tembisa’s Friendship Town |publisher=South African Institute of International Affairs |date=April 2009 |url=https://saiia.org.za/wp-content/uploads/2009/06/Occasional-Paper-30.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alden2009chinese, author = {Alden, Chris and Chen, Anna Ying}, title = {{Chinese Development Co-operation in Africa: The Case of Tembisa’s Friendship Town}}, institution = {South African Institute of International Affairs}, year = {2009}, month = apr, url = {https://saiia.org.za/wp-content/uploads/2009/06/Occasional-Paper-30.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }