Technology Transfer in Telecommunications: Barriers and Opportunities in the Case of Huawei and ZTE in South Africa

June Sun

No 13/2016, SAIS-CARI Policy Briefs from Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI)

Abstract: South Africa is one of the most important markets in Africa for Chinese firms Huawei Technologies (Huawei) and Zhongxing Telecommunications Equipment Corporation (ZTE). Telecommunications, and the information and communication technologies (ICT) sector more broadly, presents a particularly interesting China-Africa case study. This brief outlines three barriers to technology transfer from Chinese vendors to South African companies: increased managed services contracts, contestations for legitimacy, and weaknesses in the institutional framework. Drawing upon three months of field research, it concludes that the ICT sector should be prioritized by African governments, skills training should be implemented without delay, and Huawei and ZTE should address issues of legitimacy by seriously contending with the challenges of localization.

Date: 2016
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