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

This research paper by the South African Institute of International Affairs (SAIIA) examines Chinese development co-operation in Africa, using the 'Friendship Town' housing project in Tembisa, South Africa, as a primary case study. It outlines the evolution of China's aid framework from ideological solidarity to a 'mutual benefit' model and analyzes the implementation, community impact, and sustainability of the Tembisa project.

• Chinese development co-operation has evolved from an ideological basis of solidarity and non-interference during the Bandung era to a 'mutual benefit' framework established around 1982. This contemporary approach emphasizes practical results, self-reliance, and the use of Chinese factors of production—such as labor, equipment, and management—which the authors note is a form of 'tied aid' recast as 'South–South co-operation'.
• China utilizes three primary financial instruments for African co-operation: grants for social projects and technical assistance (typically provided in kind), interest-free loans for large infrastructure like dams and railroads, and concessional (preferential) loans, which are low-interest loans with terms up to 20 years.
• The Tembisa Friendship Town project, launched in 1998 as a 'gift' project totaling R25 million, aimed to build 664 low-cost housing units for lower- to middle-income residents. Unlike standard government RDP housing, these units were developed on a commercial, self-sustaining basis through the Lethabong Housing Institute (LHI) to create a capital base for future projects.
• The project successfully built local capacity by requiring the Chinese contractor, CCOEC, to hire and train local subcontractors. All building work, excluding specialized foundation work, was completed by 11 local builders who received on-site training in construction and business operations, such as opening bank accounts and running a business.
• The Tembisa project is characterized as a success due to high community involvement, the leadership of Alfred Sepirwa and Wynand Theron, and CCOEC's responsibility as an implementing agent. However, the authors note a lack of transparency and the absence of any formal, independent evaluation by the South African or Chinese governments.
• The project's financial model proved sustainable in the short term, with the LHI generating R38 million for reinvestment after selling the houses and paying off land loans, plus an additional R10 million before being handed over to the Ekurhuleni Development Agency. This model was later disrupted by a law banning council officials from acting in business entities.

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} }