Can the Dragon Make the Lion Breathe Fire? The Links of Chinese Entrepreneurs in the Addis Ababa Economy

Abstract

China’s increasing role in many African economies has given rise to discussions about the drivers of these economic relations and the benefits that Africa can reap. This article, based on field work carried out in Addis Ababa (Ethiopia), aims to contribute to this discussion by shedding light on a group that is often overlooked: the Chinese small entrepreneurs. Our investigation of five specific economic linkages shows how Chinese entrepreneurs mainly operate in secluded market segments, but also are impactful players in the local economy of Bole Rwanda (Addis Ababa). Their presence has both direct and indirect economic effects: even though focusing mainly on serving the Chinese community, these entrepreneurs play important roles in employment generation, and the transfer of knowledge of particular markets, while simultaneously offering new opportunities for Ethiopian entrepreneurs and transforming the existing vegetable market. The dragon helped the lion to breathe fire—the challenge is to make it a far-reaching and long-lasting breath.

State-business relations for entrepreneurial takeoff in Africa: institutional analysis

“…There are also some aid conditions and bilateralism which may crowd out local SMEs in favor of well-established advanced companies abroad. For example, scholars and researchers have begun to bemoan the influx of Chinese businesses” competition in many African states and the implication for teething local firms (van Boekel et al ., 2022; Kayizzi-Mugerwa, 2022).…”