Identifying Barriers to Technology Transfer in Africa

-lessons from a Chinese hydropower project in Zambia

Tianjun Hou

MESc 15’, Yale School of Forestry & Environmental Studies

April 17, 2015

Maintenance is not assured.

• Negative on technology transfer

Source: Shen, Xiaofang. 2013. Private Chinese investment in africa: Myths and realities. The World Bank, Policy Research Working Paper Series: 6311, 2013.

Zambia• Hydropower provides 99.7% electricity.• Zambia has 40% of water resources in Southern

Africa.• Only 26% of population has access to electricity.

19801982

19841986

19881990

19921994

19961998

20002002

20042006

20082010

20120

1000

2000

3000

4000

5000

6000

Zambia Hydropower Potential (MW) Total Potential

Hydropower Capacity

Kariba North Bank Extension (KNBE) Project

Zimbabwe

Zambia

Stakeholders

China Export & Import Bank (CEIB)

Development Bank of Southern Africa (DBSA)

Zambia Electricity Supply Corporation (ZESCO)

Sinohydro

= $

Financier

Financier

Project OwnerContractor $315.6M

$105M

Methods

• Week 1: Observation• Week 2+: Observation + Participation

“Once the Chinese leave, ZESCO people will cry.”

-a resident in Siavonga town

Permit system

• The ZESCO employee evaluated the job.o Safe: Issued the permito Risky: Reported to boss, left it to the next shift

SinohydroZambia Electricity Supply Corporation (ZESCO)

Apply for a permit

Issue a permit

Technology transfer

“Why does such a small job need a permit? ZESCO people know nothing but writing permits!”

-a Sinohydro engineer

Overestimate the risks

• ZESCO: Educational barriersZESCO employees Education

Station Manager Bachelor degree

Shift Head Diploma

Operator Technician certificate

• Sinohydro: Language barrierso “Me go look look”=let me go and have a looko “Too much good”=very goodo “You understand ha?”=Do you understand me?

Time pressure in Sinohydro

• Weekly progress meeting• “Other engineers didn’t say anything about it. If only I reported

this problem to my boss, what would he think of me?”

- A Sinohydro engineer

Permit vs Time

Sinohydro ZESCO

Weak monitoring after the permit

• “Your Chinese product is rubbish. That’s all what I conclude. • What we want is a machine with a single button. If I push this button,

the generator will run. If I push it again, the generator will stop.”

- a ZESCO shift head

Escape the permit system

• Oversimplify the explanation of the job• Secretly work in the power station without a permit

Conclusion

• Barriers to technology transfero Bureaucracyo ZESCO employees’ limited educationo Sinohydro engineers’ poor English

• Generalization