Private Chinese Investment in Africa : Myths and Realities

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.

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Bibliographic Details
Main Author: Shen, Xiaofang
Language:English
en_US
Published: World Bank, Washington, DC 2013-01
Subjects:ADVANCED COUNTRIES, AFFILIATED ORGANIZATIONS, AMOUNT OF CAPITAL, BANK LOANS, BUSINESS ASSOCIATIONS, BUSINESS ENVIRONMENT, BUSINESS LEADERS, BUSINESS PARTNERS, BUSINESS PERFORMANCE, BUSINESS PLANNING, BUSINESS SUSTAINABILITY, CAPITAL FLOW, CAPITAL FLOWS, CASH FLOW, CENTRAL BANKS, CITIES, COLLABORATION, COMMERCIAL LAWS, COMPARATOR COUNTRIES, CONFIDENTIALITY, CONSUMER GOODS, CREDIBILITY, CUSTOMS UNION, DATA SYSTEMS, DECISION MAKING, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT STRATEGIES, DISCLOSURE, DOMESTIC ECONOMY, DOMESTIC INVESTORS, DOMESTIC MARKET, DOMESTIC MARKETS, DUE DILIGENCE, ECONOMIC COMPETITION, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC SECTORS, ELITES, EMERGING ECONOMIES, EMERGING MARKETS, EMPLOYMENT, EXCHANGE CONTROL, EXPORT MARKET, FINANCIAL CONSTRAINTS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL SUPPORT, FOREIGN COMPANIES, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE TRANSACTION, FOREIGN FIRMS, FOREIGN INVESTORS, FOREIGN TRADE, FREE TRADE, GOVERNMENT INVESTMENT, GOVERNMENT OWNERSHIP, GOVERNMENT POLICIES, GOVERNMENT SUPPORT, GROUP OF INVESTORS, HOME COUNTRY, HOST COUNTRIES, HOST COUNTRY, HOST ECONOMIES, HOST GOVERNMENT, HOST GOVERNMENTS, INCOME, INCOME GROWTH, INFRASTRUCTURE PROJECTS, INTERNATIONAL BANK, INTERNATIONAL INVESTMENT, INTERNATIONAL MARKET, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTING, INVESTMENT CLIMATE, INVESTMENT CLIMATE ASSESSMENT, INVESTMENT DECISION, INVESTMENT DECISIONS, INVESTMENT ENVIRONMENT, INVESTMENT POLICY, INVESTMENT PROCEDURES, INVESTMENT PROJECTS, INVESTMENT PROMOTION, JOB CREATION, JOINT VENTURE, JOINT VENTURES, LABOR COSTS, LABOR FORCE, LABOR MANAGEMENT, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR RELATIONS, LABOR SHORTAGES, LABOR STANDARDS, LACK OF TRANSPARENCY, LEARNING, LEGAL FRAMEWORK, LOCAL BUSINESS, LOCAL MARKET, LONG-TERM LOAN, MANUFACTURING INDUSTRIES, MARKET ACCESS, MARKET COMPETITION, MARKET DEMANDS, MEDIA, MINIMUM WAGE, MOTIVATION, NATURAL RESOURCE, NATURAL RESOURCES, NOMINAL WAGES, OIL PRICES, OUTPUT, OWNERSHIP STRUCTURE, POLITICAL LEVELS, POTENTIAL INVESTORS, PRIVATE INVESTMENT, PRIVATE INVESTOR, PRIVATE INVESTORS, PRIVATE SECTOR DEVELOPMENT, PROFITABILITY, PROGRAMS, PROPERTY RIGHTS, PUBLIC POLICY, REGULATORY REQUIREMENTS, RENTS, RETURNS, SAFETY, SAVINGS, SECURITY CONCERNS, SERVANTS, SHAREHOLDERS, SHAREHOLDING, STOCKS, SUPPLIERS, SWAP, TAX, TAX INCENTIVES, TAX REVENUES, TECHNICAL NEEDS, TECHNOLOGICAL GAPS, TECHNOLOGY TRANSFER, TERMS OF CAPITAL, THIRD WORLD, TRACK RECORDS, TRADE PROTECTION, TRADING, TRANSPARENT INVESTMENT, WAGES, WORKING CONDITIONS, WORLD INVESTMENT REPORT, WORLD MARKET, WORLD MARKET INTEGRATION, WORLD MARKETS,
Online Access:http://documents.worldbank.org/curated/en/2013/01/17159618/private-chinese-investment-africa-myths-realities
https://hdl.handle.net/10986/12174
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Summary: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.