05/12/2015 Reporters


05/12/2015

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Welcome to this special edition of Reporters. I'm Karen alanyone

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Johannesburg. As China invest billions in Africa in a range of

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reports from across the continent, we'll be looking at what Beijing

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wants in return. Coming up: Roads, trains and megamalls, is Kenya

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getting a good deal from Chinese investment? The Asian giant is

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gambling on Kenya being able to steam ahead and pay back massive

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loans, but what if the strategy back fires?

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Security and stability. We've had exclusive access to Chinese

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peacekeepers on mission in south Sudan. Is this the start of a new

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strategic relationship that extends beyond the world of business. They

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coming here for business, and now they're coming for protection. Enjoy

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the ride, we join Ethiopians on their daily commute, with the

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state-of-the-art system from the Chinese. This is one step forward.

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And we'll hang out with the new generation of Chinese, putting roots

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down in Africa. Are they in tune with the continent's big plans?

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Since my teenage life started, I was in Africa, so basically half

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African. Johannesburg this week has had a

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distinctly Chinese player. Just a few miles from where I am in

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Chinatown, you'll find everything from traditional medicine to fortune

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tellers, dozens of heads of state and thousands of other delegates

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have been meeting to submit the relationship. There are loans and

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other forms of assistance on the table. For Kenya, like many other

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countries, the big Chinese loans have enabled them to forge ahead

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with massive infrastructure projects, many delivered by the big

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chienees state -- Chinese state corporations. But increasingly

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entrepreneurs are finding a foot hold too.

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Once a poppy plantation, now a construction site. This massive mall

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is the latest in a string of flagship building projects with a

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"made this China" label. The Chinese are responsible for a third of all

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infrastructure projects across east Africa ah, chiefed through big

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loans, which one day, these countries will have to repay. For

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millions of Kenyans who still live in poverty, their hopes for future

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prosperity are being pinned on Chinese fortunes. But they want fair

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play and local jobs, not imported labour. We're not permitting theme

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come, they -- forbidding them to come. But they should consider the

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lobing Hales. People here are tall entded. They're helping the Kenyan

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government to achieve its goals. But also the there is more. Since Kenya

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flung open the doors to Chinese investors it's seen private firms

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like this roll onto the screen. -- scene. This company manufactures

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door frames for the construction industry. Much of the unskilled

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labour is local, Kenyan staff with Chinese language skills are being

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groomed for management roles. TRANSLATION: As long as their

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knowledge and professional skills improve after our training, they

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will naturally come into the management level. There is no

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difference in skin colour in this job. Whoever is capable will do it.

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Many live and socialise separately, but about a million Chinese workers

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are now spread across Africa. Prepared to take a chance and invest

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heavily here. A younger generation seems more willing to fit in. The

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more you integrate yourself, the more you understand the local

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business opportunity, the local market. It's, you can say necessary

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for you to have a really good business here in Africa. On the

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personal level, they also want to make friends. The huge Chinese

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footprint here may be hard to ignore. But it's the long-term power

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relationship that gives cause for concern. The Asian giant is gambling

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on Kenya being able to steam ahead and pay back massive loans, but what

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if the strategy back fires? Rich or poor, Kenyans have been touched by

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the Chinese presence here. Many hope opportunity will override a sense of

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obligation to their foreign friends, further down-the-line, allowing

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Kenya to grow on its own terms. Countries like Kenya are pinning

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their hopes on achieving a great leap forward in development by

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following China's rapid model of economic growth. A staggering third

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of all infrastructure projects in Africa bear the "made in China"

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label. They either fund them, build them or both. There's a famous

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Chinese saying, to get rich you must first build a road. Indeed Chinaracy

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rapid development -- China's rapid development has been characterised

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by billions of dollars spent on infrastructure. For Ethiopia they're

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hoping it will be trains that help to boost the economy. We rod E.On

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their new state-of-the-art railway. Welcoming in Addis Ababa's new

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system, the first of its kind in Africa. Another example of

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Chinese-funded projects in this fast growing economy. It took just three

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years to complete the first phase of this project. The first passengers

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got on board for the maiden trip around the city Wow. If you go

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outside you can see the queue for transport problem. You can see in

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the rush hour the problems. For us, it's one step forward. Next station

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is... I feel good, because my country is growing. I'm the First

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Lady to go on the train. I'm very happy. This service will be

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operational 16 hours a day, including weekends. But for now,

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only one line is operational, with an additional one due for opening

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next movement when it becomes fully operational, about one million

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people will be able to use this service on a daily basis. They will

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pay fares between 20 and 40 cents per trip. To put that into

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perspective, about four to five times cheaper than what necessity

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would pay on a representing bus or minibus service. Authorities here

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believe it will help with the congestion of the capital and

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provide an efficient and modern transport system for the millions

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who live here. If you want to go from one point to the other, it

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could take you more than two-and-a-half hours. We'll do it in

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15 minutes. It's reliability, to have an appointment, you can start

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your journey knowing that you'll arrive on time. The corporation says

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the construction doesn't end here. Already the second phase of

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connecting the capital and cities is under way. They continue their quest

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to become Africa's undisputed hub. The relationship between some

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African countries and their Chinese partners have, at times, been rather

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strained. For many employees taken they've had to adopt to a new

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working culture and longer hours. At times, its been a bitter pill

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swallow. The Chinese have adapted as well. We've spoke ton one couple in

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Nairobi. They now earn enough to be able to improve the lives of

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children back at home and they appreciate the cleaner air in Kenya.

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This is their story. TRANSLATION: I have been in Kenya

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for seven years. TRANSLATION: I'm his wife. I cook

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for the factory's Chinese workers. TRANSLATION: So far I quite like my

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job. But living here we worry about robberies and other bad things.

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We're always concerned about our personal safety. The company doesn't

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allow us to go outside after work. We play games or surf the internet

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in the dormitory to pass the time. When I do go outside, it's usual

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tloi buy food or groceries, that's it. We rarely go out just for fun.

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Back in China, I can go for never do that here.

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We have two children, a boy and a girl. The boy is ten and the girl is

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12. Now they live with their grandparents. We only go home once a

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year. So we rely on video calls to hear and see our children. I miss

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them a lot. Frankly, I feel sorry for our children. We left them at

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home. It isn't right to leave them like that. Other children have their

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parents by their side. Ours don't. We can only encourage them to be

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strong. Many Chinese people, who came to Africa, have left their

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families behind. We are here because we want to make a better life for

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our children. China has big plans for Africa that go beyond business.

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Security and stability are an important part of this partnership

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and increasingly the Asian giant's been dragged into the global War on

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Terror. But it's the Chinese role as peacekeepers in trying to create a

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more stable continent which has generated interest. There's more

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than a thousand Chinese peacekeepers under the command of the UN in south

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Sudan, and we're the first foreign broadcasters to have been given

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access to them. A rare glimpse of military might,

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the Chinese in Africa. Here as peacekeepers, not simply deal

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makers, in the world's newest nation, south Sudan. 700 Chinese

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troops, part of a multinational force under UN command. We travelled

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with them to what's become a humanitarian frontline. Moving in

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convoy through the outskirts of the capital. We're heading towards the

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camps which still house more than a million homeless people, for whom

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every day is a battle to survive. The face of continued attacks. They

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see the Chinese as here to protect, not simply to trade. Always in

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Africa they are coming here for business. They are not coming for

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protection. Now they are coming to protect us. Even the children are

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getting used to their new friends in the blue helmets. This is the first

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Chinese infantry battalion to be deployed on external peace keeping

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operations, so they're not allowed to talk to us on camera, but one

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soldier told me privately that he was extremely proud to be here.

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Another said she was fulfilling a lifetime dream. Bringing with them

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medicine and expertise, the Chinese have big plans for peace keeping

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across Africa. They contribute more troops than any other permanent

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member of the UN Security Council, but for the time being, their focus

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is on trying to win the trust of locals. Here? Here? The doctor tells

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me he feels very happy he can help.. Very happy. South Sudan may be short

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of water, but it's rich in oil. The Chinese have invested billions in

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businesses here. This is about winning hearts and minds not

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protecting key installations. But looking to the future, China has

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strategic interests across the whole of Africa. Those interests go way

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beyond saving lives. China may contribute more troops to

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peace keeping than any other permanent member of the UN Security

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Council. But power and influence are not always sought through the barrel

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of a gun. As the biggest investor in Africa, China's using soft power to

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deepen its foot hold on the continent. We've been in

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Johannesburg to find out more. Preparing for a new world at the

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school they start young. First graders learn Mandarin as a

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compulsory part of the curriculum. Recognition of China's growing

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stature. Initially the school was established to teach the children of

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Chinese families. But I think now, the whole world situation has

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changed. We now recognise the critical value in our children

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learning Mandarin. It's not only the language, but Chinese values are

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also in the teaching. Further away, outside Cape Town, lies a testament

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that China has arrived. This electronics company set up shop here

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two years ago. In this factory, they produce mainly television sets and

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refrigerators. They produce on average three per minute. Some of

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the parts are imported. But for the bridges, it's a production from the

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ground up. The coming of this company here has been important

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because for a long time manufacturing was in serious

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decline. Many of these workers were without a job. Now they're back on

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the factory floor and acquiring new skills. Over 90% of the workforce is

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made up of locals. It's not charity. It's business. More Chinese

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companies are moving away from their mother land because production costs

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and wages are going up. These local factories has made us more stable,

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more better as well. Our factory as established in the 90s, and the

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unemployment rate was more than 55%. We are commitment to creating more

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than 500 employment, job opportunities for the locals.

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Currently we export to more than ten countries. South Africa included,

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Zambia, Mozambique. Malawi. There have been calls for Chinese leaders

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to use their economic clout to speak up against human rights abuses in

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Africa. Generally silence has been the response. However last year

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China increased its development aid budget by nearly $12 billion. That

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may be a sign that China is ready to use soft power. The effects of that

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are seen as African children play and sing in Mandarin.

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What I noticed after more than a decade working across Africa is the

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way the younger generation of Chinese are adapting. Unlike their

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parents, many of whom came with big corporations and kept themselves to

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themselves. Their own children are beginning to put down roots, learn

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the language and blend in. We travel north-east to Zambia to meet one

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family, whose daughter now considers herself as much an African as she is

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Chinese. We moved to Africa about seven years

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ago. It's basically because the company, because I think my parents

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think there's more opportunity and stuff. So we decide to move from

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China. Sometimes people they look at me, stare at me like "There's a

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Chinese." Otherwise, I think they're used to seeing Chinese people

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around. They're pretty OK with it. It's like pretty normal now. My

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parents worry sometimes. They will think that maybe I will have friends

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issues or something because I don't think the same way. Since my teenage

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life started I was in Africa. So basically half African. I think our

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generation has a different view. We were brought up here. We're more

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into the country. It's like, yeah, like my parents grow up in China, so

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they think different from us actually.

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It's kind of like stretching your personality. When I hang out with

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Zambian friends I'm more like African. When I go back I can be a

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proper Chinese girl. TRANSLATION: We studied the Zambian

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market before we came. Zambia is a developing country. People's living

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standards are rising. As that goes up, people's consumption of eggs and

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chicken goes up. We saw the business opportunity. That's why we came.

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TRANSLATION: Of course, China is better. I miss China a lot. I'm here

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just because he's here, the business is here and our daughter's here. I'd

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like to go back to China one day. Yeah I would go back, but I think

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more like visiting, with my parents, during holiday wise.

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do that. The Chinese businessmen we've spoken

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to say they want to raise the standard of living for all Africans.

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By turning them into consumers and boosting economic growth through

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inacrossed domestic demand. By March next year, Kenya will be the site of

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a new megamall, 66,000 square metres of prime retail space, the biggest

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of its kind on the continent outside South Africa. I've been to take a

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look. It used to be a lush, green coffee

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plantation. Now it's given way to upmarket coffee shops. At least

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that's the plan when this megamall opens next year, the biggest in

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Sub-Saharan Africa outside South Africa. We're going onto a

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construction site, so the hard hat. Kenya's not seen anything like this

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before. There'll be shops, gyms, restaurants, bars, luxury

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accommodation and office suites, all on 100 acres of prime real estate.

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There is some 2,000 people working on this site round the clock to get

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things ready for the opening date of March next year. In the past, there

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has been criticism that with big projects like these it's been mainly

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Chinese labour that's been used. For every 20 of the Kenyan workers

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there, there's one Chinese supervisor. There is now a

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commitment to try and train more Kenyans into managerial roles, so

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eventually they'll mirror the skills of the Chinese. Christopher's team

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are putting the finishing touches to the flooring in what will eventually

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be a restaurant. With thousands of people expected to flock here every

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day and with Kenya's history of terrorist attacks, security is one

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of the key considerations. $12 million has been invested in the

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latest state-of-the-art technology to make sure this place is safe. In

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many ways, this megamall is something of a metaphor for an

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increasingly confident, globalised Kenya and it's an image that its

:21:29.:21:33.

Chinese partners are keen to endorse.

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Africa may be looking east to development dreams but China is not

:21:38.:21:40.

alone in seeking opportunities here. India is hoping to play catch up,

:21:41.:21:44.

competing with its Asian rival and drawing on its deep historic ties

:21:45.:21:50.

here. Despite China's turnover being three times that of India's. The

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subcontinent is working hard to make up for that time. We look at the

:21:56.:22:01.

rivalry between China and India for Africa's business.

:22:02.:22:07.

Yand's putting on a grand show to would Africa. A lavish spectacle

:22:08.:22:12.

illustrating the historical and cultural ties, but with an eye to

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the future and the hope of generating prosperity. It's a summit

:22:21.:22:24.

that's unprecedented, with a record number of African leaders taking

:22:25.:22:34.

part. From powerful ones such as South Africa's Jacob Zuma to

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controversial ones like Robert Mugabe. He's now in his 90s.

:22:43.:22:55.

Welcoming them, Indian Prime Minister Modhi said Indian and

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Africa could develop commitment on climate change. We will develop

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India, Africa partnership on clean energy, sustainable habitats, public

:23:10.:23:16.

transport and climate resilient agriculture. India's looking for new

:23:17.:23:21.

business opportunities. And a number of African countries have asked for

:23:22.:23:25.

more investment and even help in combatting terrorism. It's a two-way

:23:26.:23:30.

thing. One, Africa is changing. The demographics is changing. It's

:23:31.:23:34.

urbanising. 40% of the population is urbanised. It's got tremendous

:23:35.:23:38.

arable land available here for exploitation. It's been 32 years

:23:39.:23:44.

since India organised a summit of this scale. While everyone is

:23:45.:23:48.

pleased at the turnout, there is a sense here that India has been late

:23:49.:23:53.

in reaching out to Africa, like China, India's interested in

:23:54.:23:57.

Africa's rich reserve of natural resources. While India's annual

:23:58.:24:03.

trade turnover is worth $72 billion. China does business worth $200

:24:04.:24:08.

billion. A number of Africans travel to India for medical treatment and

:24:09.:24:12.

to study. Both at a fraction of what they would have to pay in the West.

:24:13.:24:17.

Now India wants to extend this limited engagement. The question is

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whether its renewed focus in Africa will bear fruit.

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That's all from this special edition of Reporters. From here in

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Johannesburg, goodbye for now.

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