Lessons for the African investment environment from the Chinese anti-corruption campaign

20th October 2015

Lessons for the African investment environment from the Chinese anti-corruption campaign

It is well known that since new leadership was voted into government following the 18th National Congress of the Communist Party of China, it has taken the world by storm in terms of its anti-corruption campaign. In the three-year period following the campaign's inception, the results speak for themselves. The campaign arose from the Communist Party’s understanding that corruption’s deep roots within Chinese society will eventually erode the foundations of good governance if not dealt with swiftly, and that rooting out corruption will not only improve the political landscape and win the approval of the people, but will also create a suitable political environment to stabilise the economy during turbulent times.

In a globalised world, anti-corruption principles are a global standard and are not limited to China. Thousands of miles away, Africa is similarly plagued by corruption and faces the same difficulties in creating a suitable environment to nurture economic development. There are, however, experiences that the Chinese government can share that may be beneficial to its African counterparts in the fight against corruption. These include:

Increase international cooperation in fighting corruption. In today’s world, corruption also has an international aspect. Accordingly, African countries must not only focus on corruption occurring within their borders, but, as with the Chinese approach, they must also rely on international bodies, such as Interpol, and improve cooperation with Western countries such as the United States and Canada in order to arrest fugitives and bring them to trial. Likewise, China frequently makes reference to the anti-corruption experiences of Western countries and adapts them to build anti-corruption mechanisms suitable for its context.

Fighting corruption is a long and difficult road for many developing economies, but for African countries in particular, it is an essential component in developing and improving their economies. Only with the right political resolve will a country be able to reduce corruption, restore its economy, uplift society, improve the living standards of its people, and build an effective political environment.

Written by Kenny Chiu, Executive, Head of China Practice Group and Wil Huang, Senior Transactions Manager, China Practice Group, ENSAfrica