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Articles

Eastern Africa’s tobacco value chain: links with China

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Pages 1161-1180 | Received 19 Jul 2019, Accepted 23 Feb 2020, Published online: 24 Mar 2020
 

Abstract

While debates continue about China’s role in sub-Saharan Africa, there is growing consensus that China is a different kind of development partner. One distinct feature of Chinese partnerships is that they include support for the tobacco industry, a sector other donor states and institutions shun. Not only is tobacco a primary agricultural export in a number of Africa states, the state-owned Chinese National Tobacco Corporation is the largest tobacco company in the world. This paper analyses Chinese support for the tobacco industry in three states – Zimbabwe, Malawi and Zambia – documenting how co-operation is shaped by Chinese state capitalism and assessing the development and governance implications. Following an introduction situating the analysis within the context of China–Africa co-operation and tobacco’s global value chain, Chinese engagement in each country is analysed. Findings indicate that, despite differences across case studies in terms of development outcomes, common governance implications are apparent. African elites initiated tobacco-related co-operation to meet their interests, but Chinese interests dominated implementation. Consequently, Chinese investments have maintained hierarchal governance of an exploitive and harmful industry. Analyses of Chinese African co-operation need to move beyond public–private paradigms and interrogate the nuances of Chinese state capitalism in Africa.

Disclosure statement

The authors declare they have no competing interests.

Notes

1 Jenkins and Edwards, “Economic Impacts of China and India”; Biggeri and Sanfilippo, “Understanding China’s Move into Africa.”

2 Bräutigam, “Aid ‘with Chinese Characteristics.’”

3 Davies, How China Delivers Development Assistance.

4 Tang, Li and Mukwereza, “Blurring the Lines between Aid and Business.”

5 Biggeri and Sanfilippo, “Understanding China’s Move into Africa.”

6 Bräutigam, “Aid ‘with Chinese Characteristics.’”

7 Gu et al., “Chinese State Capitalism?”

8 Konings, “China and Africa.”

9 Bräutigam, China, Africa, and the International Aid Architecture.

10 Ibid.

11 De Bruyn, “New Friends, Easier Partners”; Hodzi, “China and Africa: Economic Growth.”

12 Cheru and Modi, Agricultural Development and Food Security in Africa.

13 Hodzi, “China and Africa: Economic Growth.”

14 Okolo and Akwu, “China’s Foreign Direct Investment”; Scoones et al., “New Development Encounters.”

15 Chen et al., China–Africa Agricultural Modernization Cooperation.

16 Bräutigam, Will Africa Feed China?

17 Fang, Lee, and Sejpal, “China National Tobacco Corporation.”

18 Murphy, “Rise of a New Superpower.”

19 Husain, English, and Ramanandraibe, “Overview of Tobacco Control and Prevention.”

20 FCTC, “UN Agencies and Tobacco Industry Interference.”

21 World Bank, Zambia Commercial Value Chains.

22 Lee, Botero, and Novotny, “Manage and Mitigate Punitive Regulatory Measures.”

23 Labonté et al., “Consequences of Policy Incoherence.”

24 Lencucha et al., “Investment Incentives and the Implementation.”

25 Smith and Lee, “From Colonisation to Globalisation”; Lown, McDaniel, and Malone, “Tobacco Is ‘Our Industry.’”

26 We define Eastern Africa using the UN definition, which lists Malawi, Zambia and Zimbabwe.

27 Gereffi, Humphrey, and Sturgeon, “Governance of Global Value Chains.”

28 Gereffi and Fernandez-Stark, Global Value Chain Analysis.

29 Moyer-Lee and Prowse, “How Traceability Is Restructuring”; Goger, Bamber, and Gereffi, Tobacco Global Value Chain.

30 Makoka et al., “Costs, Revenues, and Profits”; Moyer-Lee and Prowse, “How Traceability Is Restructuring”; Goger, Bamber, and Gereffi, Tobacco Global Value Chain.

31 Fang, Lee, and Sejpal, “China National Tobacco Corporation.”

32 Prowse, “History of Tobacco Production and Marketing.”

33 Smith and Lee, “From Colonisation to Globalisation.”

34 Aguinaga Bialous and Peeters, “Brief Overview of the Tobacco Industry.”

35 Moyer-Lee and Prowse, “How Traceability Is Restructuring.”

36 Woodend, Potential of Contract Farming.

37 Ibid.

38 Moyer-Lee and Prowse, “How Traceability Is Restructuring.”

39 Labonté, “African Tobacco Farmers”; Boseley, “Threats, Bullying, Lawsuits”; Mbwewe, “IPS Creating Destitutes.”

40 Braunschewiger, “Witness: Tobacco Farmers Kept in the Dark”; Meko, “Tobacco: Poor Farmers Contracted.”

41 Moyer-Lee and Prowse, “How Traceability Is Restructuring.”

42 Manyeruke and Mangwanya, “Analysis of China–Zimbabwe Tobacco Trade.”

43 TIMB, “2016 Annual Statistical Report”; TIMB, “2018 Licensed Contractors.”

44 Manyeruke and Mangwanya, “Analysis of China–Zimbabwe Tobacco Trade.”

45 Mukwereza, “Reviving Zimbabwe’s Agriculture.”

46 Goger, Bamber, and Gereffi, Tobacco Global Value Chain.

47 Mukwereza, “Reviving Zimbabwe’s Agriculture”; Scoones et al., “Tobacco, Contract Farming and Agrarian Change.”

48 Youde, “Why Look East?”

49 Gu et al., “Chinese State Capitalism?”; Mukwereza, “Reviving Zimbabwe’s Agriculture.”

50 Dzirutwe, “China Lends Zimbabwe $700 Million”; Chun, China–Zimbabwe Relations.

51 Chun, China–Zimbabwe Relations.

52 Mugwara, “China’s Silver Lining.”

53 OEC, “Where Does Zimbabwe Export.”

54 MOFCOM, “Zimbabwe Tian Ze Tobacco Corporation.”

55 Xinhua, “Zimbabwe Tobacco Farmers Hail Support.”

56 Ibid.

57 Mukwereza, Situating Tian Ze’s Role.

58 Goger, Bamber, and Gereffi, Tobacco Global Value Chain.

59 Zimbabwe Situation, “4 Tobacco Farmers Commit Suicide.”

60 Tang, Zhao, and Mukwereza, Mixed Starts and Uncertain Futures.

61 Gu et al., “Chinese State Capitalism?”

62 Kawadza, “Zim–China Trade.”

63 Dzirutwe, “Zimbabwe Tobacco Sales.”

64 Sustainable Afforestation Association, “What We Do.”

65 Kawadza, “Zim’s Tobacco Industry Battles Deforestation.”

66 Fang, Yang, and Wan, “Pro-Tobacco Propaganda.”

67 Otañez and Glantz, “Social Responsibility in Tobacco Production.”

68 Mukwereza, Situating Tian Ze’s Role; TIMB, “2016 Annual Statistical Report.”

69 Zimbabwe Situation, “4 Tobacco Farmers Commit Suicide.”

70 Smith and Lee, “From Colonisation to Globalisation.”

71 Schmid, “Malawi: Premium Burley to the World.”

72 TCC, “Statistics.”

73 De Bruyn, “New Friends, Easier Partners.”

74 Moyer-Lee and Prowse, “How Traceability Is Restructuring.”

75 Semu-Banda, “Trade-Malawi: Turmoil.”

76 Quoted in Chinoko, “Peeping at Malawi’s Tobacco Industry.”

77 Otañez, Mamudu, and Glantz, “Global Leaf Companies.”

78 Smith and Lee, “From Colonisation to Globalisation.”

79 Quoted in Tong, “Malawi Eyes China.”

80 Nation Online, “China Ready to Buy.”

81 Quoted in Sande, “Two New Companies Start Buying.”

82 Khamula, “Goodall Tells Malawians to Dump Tobacco.”

83 Zimbabwean, “China Shuns Malawi Tobacco.”

84 Kambwiri, “Malawi Hails Alliance One.”

85 Jimu, “TAMA Asks China to Buy More.”

86 Quoted in Chiyembekeza, “Beef up Industrial Sector .”

87 TCC, “Statistics.”

88 WHO, Malawi.

89 Kandiero, “Chinese Firm in Dubious Tax Deals.”

90 Ibid.; Joossens and Raw, “From Cigarette Smuggling.”

91 Kandiero, “Chinese Firm in Dubious Tax Deals.”

92 TCC, “Statistics.”

93 Labonté et al., “Institutional Context of Tobacco Production in Zambia.”

94 Ibid.

95 Republic of Zambia, Vision 2030.

96 Lusaka Times, “No One Will Frustrate Our Efforts“; “Mwanza, “Tracking Tobacco Industry in Zambia.”

97 Labonté et al., “Institutional Context of Tobacco Production in Zambia.”

98 World Bank, Zambia Commercial Value Chains.

99 Ibid.

100 Lusaka Times, “British American Tobacco Constructs.”

101 Hairong and Sautman, “Chinese Farms in Zambia.”

102 Zambia Development Agency, “Multi-Facility Economic Zone.”

103 Huang and Zhang, “Construction of the Zambia–China Economic.”

104 Yang, “Chinese Firms to Construct Economic Zone.”

105 Mwanawina, China-Africa Economic Relations.

106 Lusaka Times, “No One Will Frustrate Our Efforts.”

107 Ibid.

108 Ibid.

109 Mwanza, “Tracking Tobacco Industry in Zambia.”

110 Lusaka Times, “Eastern Province Signs MOU.”

111 Banik, “China’s Aid and Poverty Reduction in Africa.”

112 Labonté et al., “Institutional Context of Tobacco Production in Zambia”; Smith and Lee, “From Colonisation to Globalisation”; Scoones et al., “Tobacco, Contract Farming and Agrarian Change.”

113 Hodzi, “China and Africa: Economic Growth.”

114 Banik, “China’s Aid and Poverty Reduction in Africa.”

115 Tan-Mullins, Mohan, and Power, “Redefining ‘Aid’ in the China–Africa Context.”

116 Drope et al., “Opinion: Tobacco Companies.”

Additional information

Funding

This work was supported by the Social Sciences and Humanities Research Council of Canada under Grant 430-2018-00736.

Notes on contributors

Julia Smith

Julia Smith is a Research Associate in the Faculty of Health Sciences at Simon Fraser University. She holds a PhD in Peace Studies from the University of Bradford and has over 10 years’ experience working with international development projects. Her research focuses on the political business strategies of the tobacco industry, and on health and development in sub-Saharan Africa.

Lauren DeSouza

Lauren DeSouza is a Research Assistant in the Faculty of Health Sciences at Simon Fraser University. She obtained her MPH in Global Health from Simon Fraser University in 2019. She has worked with international development projects in Canada, Haiti and sub-Saharan Africa.

Jennifer Fang

Jennifer Fang is a Research Fellow in the Faculty of Health Sciences at Simon Fraser University, where she is also the Project Administrator for the Global Tobacco Control Research Programme. She holds an MPH from the University of Liverpool and has conducted extensive research on the global tobacco industry, particularly focusing on the China National Tobacco Corporation.

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