• Tue
  • Dec 23, 2014
  • Updated: 9:01am
BusinessCompanies
INVESTMENT

Blackwater founder Erik Prince to help Chinese firms set up shop in Africa

PUBLISHED : Sunday, 06 July, 2014, 5:02am
UPDATED : Monday, 07 July, 2014, 8:13pm

Erik Prince, the man behind controversial private security firm Blackwater, wants to "take the drama out of Africa" for Chinese firms eyeing the continent's trove of natural resources.

Prince, who sold Blackwater in 2010, is now chairman of Frontier Services Group (FSG), which provides logistics, aviation and risk management services to firms that want to set up in Africa.

"We want to take some of the drama out of Africa; the drama of getting there, setting up and operating there," he said.

Over the past decade, Chinese investors have poured billions into Africa to secure access to natural resources amid concerns of exploitation. China is Africa's biggest trade partner.

FSG, which has a sales team in Beijing and is headquartered in Hong Kong, is closely linked to Citic Group, China's largest state-owned conglomerate.

While the dictum "high risk, high return" applies to the continent, Prince said his customers - who are looking for bauxite, steel, energy, copper, tin or gold - should focus on another slogan: "happy locals, happy project".

It is important for foreign companies to partner local businesses, he stressed, adding that Chinese firms face certain risks simply because they have a lot of people in Africa.

"If there's a concerted effort against some regime in a country, then anyone there helping that country build its infrastructure … will be subject to the wrath of that insurgency," Prince said. "Some blame might get wrongly put on a Chinese firm that's just there building a road, so there's animosity directed towards them."

Prince singled out Nigeria as a key challenge. "It's the continent's single largest economy and the fact that they've had more than 200 schoolgirls captured … represents a real challenge for any company," he said.

In April, Islamist militant group Boko Haram kidnapped over 200 schoolgirls, who remain captive. A month later, in neighbouring Cameroon, Boko Haram rebels were suspected of abducting 10 Chinese employees.

"The tragedy of those schoolgirls being taken or Chinese nationals … kidnapped in Cameroon, those are challenges that [state-owned enterprises] haven't really faced before," he said.

Share

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

4

This article is now closed to comments

hkhk
What a war criminal THAT guy is.
sjfore
From here on, I want to hear nothing more about China's "peaceful rise," much less its altruistic concern for development in Sub-Saharan Africa. Eric Prince is indeed a war criminal, and the bleeding edge of the obscene corporatization of modern warfare. This demonstrates that Chinese capitalists are no less vampiric than their western compatriots. Joseph Conrad nailed the whole festering shebang 115 years ago.
BabyMan
He'll get the job done and fetch those minerals for China at any cost.
mercedes2233
OK for western countries to colonize by gunboat but not OK for China to just trade? It is already an important trading partner with Africa without this person's help. If you don't want to read of China's 'peaceful rise', you might have to isolate yourself. I believe that it has pocketed a lot of winnings from providing infrastructure and consumables for the World Cup already, without firing a single shot, or running in any race. Heh heh.
And, what this person offers to do and whether he will succeed are different things. I don't know why SCMP is giving him this coverage, or why readers need to react to this pie-in-the-sky.
 
 
 
 
 

Login

SCMP.com Account

or