Decoding China's investment in Africa

Setting in train Africa's railways

"Chinese restaurants are doing really well in Gabon," she says. "I also have Chinese friends here in the timber business, and they say they are doing well, too."

Li says the restaurant, which has been operating in Libreville for about 25 years, was one of the first Chinese eateries in Gabon. These days, more than half the clientele are locals.

"About six of our 16 staff members are from Gabon," she says. "Locals like it because it's generally cheaper to eat at a Chinese restaurant than a French restaurant. And we buy most of our vegetables and meat from our Gabonese friends."

On the 11th floor of one of the few office towers in Libreville, Zhang Longzhu presides over a private business that sits at the opposite end of the spectrum from the Weng Restaurant.

Zhang, 51, deputy director-general for Dameng Mining Industries, oversees a large manganese mine the company operates a five-hour drive from Libreville in Gabon's jungle-cloaked interior.

The mine, a joint venture with a local company, began operating about three years ago and produces about 200,000 tons of manganese a year worth about 1,000 yuan ($160) a ton.

Zhang says Dameng, a private company, has already made a positive impact locally in terms of investment, employment, taxes and infrastructure.

"We invested more than $100 million setting up here, but this does not include some new wharves we are going to build. Mining equipment and exploration were only a small part of our investment. A big portion went into roads and railway lines and port upgrades.

"It's a big boost to local infrastructure and puts money into the local economy. We inject cash into government coffers. We pay corporate taxes to the government here at 30 percent, and we pay them various export, import and miscellaneous taxes, too."

Zhang says the company spends a lot of time and money on training locals. "We have 270 employees here, and 150 are from Gabon."

Chinese private companies are good for both China and Gabon in that they give a lot and take little in return, he says.

"We are very different from the State-owned giants. They get big government loans; we get very little subsidies for exporting raw materials back to China. Sometimes we don't even get that. Most of the money we spend comes from our own pockets."

Ultimately, Zhang says, the biggest distinction between China's private and State-owned companies in Africa is longevity.