Survival of the fittest? Kenya's jua kali and Chinese businesses

Abstract

China's engagement with African countries is growing rapidly, spanning trade, aid and investment. While speculation remains over the opportunities and challenges China brings to the continent, some observers have suggested that capital inflows from the Chinese may foster sustainable economic development in the region. The majority of such claims, however, remain rooted in assessments of ?globalization from above,? with little regard for the rapid rise of Chinese small and medium enterprises (SMEs) among many of Africa's informal economies. Drawing on case study data from Kenya, this paper argues that rather than large scale investment and aid projects, it is this proliferation of Chinese entrepreneurship that carries the greatest ramifications for Africa's economic development, with mixed results. The analysis first explores the social and economic organization of overseas Chinese enterprises, and the centrality of Kenya's informal sector - the jua kali - for the country's economy...