Chinese Economic and Trade Co-operation Zones in Africa: The Case of Mauritius
Summary
This research paper examines the establishment of the JinFei Economic and Trade Co-operation Zone (ETCZ) in Mauritius. It analyzes how the Mauritian government successfully attracted Chinese investment despite lacking the natural resources or large market size typically targeted by Chinese ETCZs in Africa, positioning the island as a strategic business platform between Asia and Africa.
Key insights
- Chinese Economic and Trade Co-operation Zones (ETCZs) in Africa generally target resource-rich countries and large markets to secure natural resources and explore untapped consumer potential. Examples include Zambia (copper), Nigeria (oil), and Egypt (oil).
- The JinFei ETCZ in Mauritius is an anomaly because the country is resource-poor and has a small population, yet it attracted the largest expected investment among sub-Saharan ETCZs at $750 million.
- The Mauritian government secured the ETCZ by leveraging its 'soft infrastructure', including political stability, the rule of law, and its status as a gateway to the Southern African Development Community and the Common Market for Eastern and Southern Africa.
- The project evolved from the 'Tianli project' to the 'JinFei ETCZ' after the original developer, Tianli Spinning Co. Ltd, faced delays and financial constraints during the 2008 crisis. The project was rescued in February 2009 following an intervention by President Hu Jintao, leading to the entry of two Shanxi province state-owned enterprises: Taiyuan Iron & Steel Company (TISCO) and Shanxi Coking Coal Group.
- The JinFei ETCZ shifted its focus from light manufacturing to a diversified service and innovation hub. Targeted sectors now include real estate, hospitality centres, knowledge hubs (such as universities and R&D centres), and logistical sites for exports to Africa.
- The agreement for the ETCZ included specific terms: a 99-year land lease, a 15% corporate tax (rejecting Chinese requests for zero tax), and the provision of Mauritian passports for certain investors (one passport per $500,000 investment).
Cite the original document
- APA
- Alves, A. C. (2011). Chinese Economic and Trade Co-operation Zones in Africa: The Case of Mauritius. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2011/02/Occasional-Paper-74.pdf
- Chicago
- Alves, Ana Cristina. Chinese Economic and Trade Co-operation Zones in Africa: The Case of Mauritius. South African Institute of International Affairs, 2011. https://saiia.org.za/wp-content/uploads/2011/02/Occasional-Paper-74.pdf.
- Wikipedia
- {{cite report |last1=Alves |first1=Ana Cristina |title=Chinese Economic and Trade Co-operation Zones in Africa: The Case of Mauritius |publisher=South African Institute of International Affairs |date=January 2011 |url=https://saiia.org.za/wp-content/uploads/2011/02/Occasional-Paper-74.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{alves2011chinese, author = {Alves, Ana Cristina}, title = {{Chinese Economic and Trade Co-operation Zones in Africa: The Case of Mauritius}}, institution = {South African Institute of International Affairs}, year = {2011}, month = jan, url = {https://saiia.org.za/wp-content/uploads/2011/02/Occasional-Paper-74.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated