Exponential growth of China’s investments in Africa has led to changing perceptions about China in Africa. U.S.-based research think tank Brookings used data from China to compile a list of Chinese investment projects in Africa, debunking popular myths about its engagement there. First, according to the most recent data, China accounts for about 3 percent of direct investment in Africa. That’s relatively little, Brookings says. The second myth: Chinese investment is only attracted to natural resource wealth. It’s true, but no more so than Western investment. Third, Chinese investment is indifferent to rights or rule of law, whereas Western investment tends to stay away from the poor-governance environments. In fact Chinese investment is equally distributed between good and poor-governance environments.
The Chinese database used for this report gives a more accurate picture of what small- and medium-sized private Chinese firms are doing in Africa than large, state-owned ones.
Sources: Brookings, MacauHub, Brookings.
This AFKInsider article was first published Aug. 25, 2015.