Huang Hongxiang, Founder and CEO of China House
Innovative NGO in Kenya facilitates the smooth transition of Chinese companies landing in Africa
By Xia Yuanyuan
Huang Hongxiang participates in Kenya’s biggest ivory destruction initiativeWhen asked why he moved to Africa, 28-yearold Huang Hongxiang said, “In Africa, everything is different. Africa has bright prospects.”
Many of Huang’s friends admire him for following his dream, because after graduating with a Master’s Degree in Public Administration from Columbia University in New York in 2013, where he focused on sustainable development practices, instead of finding a job in the United States or returning to China, he chose to pursue his career in Africa.
In 2014, Huang founded China House in Kenya, with an aim to help Chinese companies make a “smooth landing” in Africa. In the past two years the organization has researched China’s investment in Africa, and provided guidance to Chinese companies wanting to set up operations in Africa. In addition, with efforts made by China House, more Chinese companies and individuals are involved in African wildlife and nature protection, something close to Huang’s heart.
Setting sail for Africa
Huang’s interest in Chinese companies’ overseas development goes back to 2011, when Huang traveled solo to the Republic of Ecuador in South America to conduct research on this topic. While doing his field research, he found that China’s overseas investment was plagued by numerous problems.
“More and more Chinese companies are going global, and I want to help with the sustainable development of their overseas investment with the knowledge I learned in the university. As Africa is the first choice for many Chinese enterprises going global, I decided to settle down in Africa after graduation,” he said. “Chinese enterprises in Africa need a good service platform to guide them and help them better develop in Africa.”
In April 2014, Huang called on a group of like-minded young Chinese people to join him in Africa. Together, they registered China House in Kenya, the first Chinese NGO in Africa.
China House is located within a residential area of Nairobi, capital of Kenya, with three full-time and 10 part-time staff whose average age is below 30. As young graduates, according to Huang, they are full of passion and eager to make a positive difference in Africa.
“We hope to grow together with those who want to explore opportunities in Africa,” said Huang. On the one hand, his team conducts research on topics related to the problems affecting Chinese overseas investment, including operation management issues, labor conflicts and environmental impacts. On the other hand, they also provide services such as project matching, premarket research, strategy formulation and corporate social responsibility management.
Solving problems
As Africa becomes one of the fastest-growing regions in the world, Chinese investors are making their mark on the continent. They lay rails, build roads, and set up electricity and communication networks, and other infrastructure. “China is the largest trading partner of Africa. But behind soaring numbers, there are a lot of problems in the process of enterprise cooperation,” said Huang.
Huang noted that back home, Chinese companies are good at doing business, but pay less attention to communication, which, according to Huang, is not good for their development in Africa.
“We need to remind Chinese companies to promote effective communication and understanding with local NGOs, which are crucial aspects to ensure Chinese com-panies’ smooth landing in Africa,” Huang added.
Huang Hongxiang (third left) takes part in an antipoaching activityLabor conflicts are the most common challenge faced by Chinese enterprises in Africa, and are often worsened by poor communication with local com-munity and workers. Problems in aspects such as informal employment agreement, wage standards, benefits, and relations with labor unions are impeding to some extent their healthy development in Africa.
“Chinese companies should coordinate and work together to define corporate social responsibility norms, and enhance the transparency of corporate management so as to achieve long-term and healthy development in Africa,” Huang told ChinAfrica. “In this regard, we can provide help.”
Corporate responsibility
In 2014, China House launched the Africa Tech Challenge (ATC) project for China’s AVIC International Holding Corp. in Nairobi. The project aims at providing technology, career and entrepreneurship training for local young people. Huang believes sustainability is vital for business success. ATC creates employment opportunities by giving Kenyan young people a chance to enroll in technical courses, while also demonstrating Chinese company’s corporate social responsibility.
China House is also committed to reducing social and environmental impacts of Chinese overseas investment. According to Huang, regardless of their size, businesses all leave a relatively large carbon footprint. Any steps they can take to reduce those footprints are considered good for both the company and society as a whole. Huang is a frequent participant in many African wildlife protection initiatives, and he is also an active wildlife conservationist.
“Environmental protection is one of the top issues any company should pay attention to,” Huang said. China House maintains good cooperative relationships with wildlife conservation organizations in Africa, including Save the Elephant, Wildlife Direct and Mara Conservation Fund. Every year, the NGO organizes trips for young Chinese people to visit wildlife conservation areas in Africa and participate in activities.
“We need to let African people know that there are more and more Chinese people who are getting involved in initiatives of protecting wildlife in Africa, which is crucial for Chinese people and Chinese enterprises to better integrate into Africa,” said Huang.
Thorns in development
On August 9, Huang was invited to participate in ChinaAfrica Public Diplomacy Forum in Tanzania’s Dar es Salaam, where he discussed with officials, businesspeople and experts about future development opportunities between China and Africa. After the forum, Huang has a clearer vision for the future development of his organization.
“China House’s goal is to be a public diplomacy platform for Chinese companies to better integrate into Africa for sustainable development on the continent. We also hope to reduce the divergence of opinions which could lead to misunderstandings between China and Africa,” said Huang.
The main problem facing China House now is its financial condition. Though many projects have been rolled out since its creation, few brought a significant income to the NGO. But Huang remains confident: “After two years of exploration and development, the business model of China House is now well-established. This year there will be a fund-raising activity in Shanghai.”
Looking ahead, Huang is convinced that China House has a bright future. CA