Private Chinese Investment in Africa: Myths and Realities

Xiaofang Shen, visiting scholar in the SAIS China Studies Program and former World Bank investment specialist, published in January 2013 an excellent study titled “Private Chinese Investment in Africa: Myths and Realities” as a World Bank working paper.

The paper highlights the importance of private sector Chinese investment in Africa and draws on pilot studies in Nigeria, Ethiopia, Zambia and Ghana. The underlying force behind increased private Chinese investment in Africa is the growing pressure of industrial restructuring in coastal China, which drives some labor-intensive firms to relocate to other parts of the world, Africa, including Ethiopia.

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Contact Author
Xiaofang Shen
Johns Hopkins University
Washington, DC 20036-1984
United States
xshen2[at]live.johnshopkins.edu

Private Chinese Investment in Africa: Myths and Realities


Xiaofang Shen

Johns Hopkins University
January 1, 2013

World Bank Policy Research Working Paper No. 6311

Abstract: 
Private Chinese outbound investment, not as well-known as government-led investment, offers special opportunities and challenges for Africa today. The significance of Chinese private-sector investment is already visible in the burgeoning manufacturing sector in some parts of Africa, and the trend will continue to grow in the near future. The underlying force behind this trend is the increased pressure of industrial restructuring in coastal China, a force that drives some labor-intensive firms to relocate to other parts of the developing world, including Africa. African host country governments can respond to this phenomenon with proactive development policies and strategies to maximize private Chinese investment for the benefit of their own economies.

Number of Pages in PDF File: 49

Keywords: Debt Markets, Investment and Investment Climate, Emerging Markets, ICT Policy and Strategies, Labor Policies

working papers series

Date posted:January 10, 2013

Click the link below to read the paper in PDF format
Private Chinese Investment in Africa Myths and Realities – SSRN-id2198780