To what extent has China’s FDI in the Zambian copper mining industry contributed to the development of mining towns in the country?: a comparative case study

Abstract

This paper explores how Chinese Foreign Direct Investment (FDI) into the Zambian copper mining industry has impacted development in mining towns, specifically in Chambishi, Kalulushi and Luanshya. Chinese FDI in Zambia began around the early 2000s and has maintained a heavy presence over the years, for the purpose of measuring its impact the paper will be working around the timeline from 2005-2015, and because development has various definitions depending on the source, I will focus on some of the most agreed upon parameters of development: infrastructure (roads and bridges), social development (formal employment creation, recreational centres, technology and skills transfer, and state revenue) and human development (education, welfare). The study also explores FDI from other firms in the country and whether the lack of corporate social responsibilities laws in Zambia, contributes to development or the lack thereof.

The purpose of the study is to assess whether Chinese FDI in the copper mining industry is having a positive impact in the towns where it most concentrated and if this benefits majority of the town’s residents. The study employed a mixed design of qualitative and quantitative, where survey questionnaires were used to gather the data and the data analysed assisted in answering the initial hypothesis: Chinese FDI has had a positive impact on development.