Chinese foreign direct investment in Africa: Something old, something new

The possible impact of China on Africa is one of the most debated contemporary topics, with Sino-African relations increasing significantly since 2000. A global slowdown and structural change in Chinese economy has highlighted Africa’s dependence on FDI as steep declines in FDI affects Africa currently. The Landscape in FDI to Africa has also changed significantly during the preceding decade with both India and China becoming significant investors on the continent. Chinese FDI has incurred severe criticism by OECD members as their interpretation is that the Chinese are “re-colonising” Africa with the soul aim of exploitation. This paper aims to put the state of Chinese Foreign Direct Investment (FDI) in Africa into perspective through source country comparisons, sectoral comparisons and investigating Chinese FDI practices. Data visualisation techniques and analysis are used to infer similarities and differences between Chinese investors and other investors in Africa. This alternative method is driven by the nature of the available data and its resulting statistical possibilities. The results show that China is mostly following investment patterns of other investors, although heavily skewed towards oil, coal and gas; as well as other resource sectors. China otherwise tends to invest in medium growth, diversified economies, predominantly in Nigeria and Egypt. Specific exceptions are Ethiopia where investment in communications dominate, Cameroon where Chemicals dominate, Angola were Chinese investment in the coal oil and gas sector was out performed by the real estate investments and South Africa and Tanzania that have a more even spread between sectors than the rest of the continent.