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Private Chinese Investment in Africa
Report

Private Chinese Investment in Africa

Myths and Realities

Xiaofang Shen
World Bank, 2013
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Editorial Rating

8

Qualities

  • Innovative

Recommendation

Outsiders tend to attribute grand, monolithic motivations to China’s international activities. In fact, privately held small and midsize firms drive China’s work in Africa, where they pursue profitable opportunities and function like any other nation’s businesses. This report – sponsored by the World Bank – presents original research into how the Chinese government selects African nations as investment sites and how Chinese firms operating in Africa see their roles. It suggests ways that all parties can improve the growth prospects of both Chinese businesses and African economies. getAbstract recommends this concise, worthwhile, though statistics-heavy, study to global executives operating in Asia and Africa, and to those who are thinking about it.

Take-Aways

  • China’s recent – and noteworthy – spate of investment in Africa has raised speculation.
  • Yet according to UN statistics, China is responsible for only 4% of total foreign direct investment (FDI) in Africa.
  • China’s ventures in extracting African resources resemble those of other nations.

About the Author

Xiaofang Shen is a scholar at the China Studies Program at Johns Hopkins University’s School of Advanced International Studies.

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