ABSTRACT
Chinese investment in Africa has rapidly increased over the past two decades. This chapter seeks to explain the causes of Chinese foreign direct investment (FDI) in Africa; to analyze the benefi ts and drawbacks of Chinese FDI for African development; and to identify policies African states can choose so they can capitalize on Chinese FDI. To do so, this chapter makes the following arguments. Chinese investment in Africa is growing in part because the Chinese government actively promotes it. China’s main motivation for investing in Africa is to access Africa’s natural resources; but Chinese investors also seek market access in Africa and the West. Consequently, African economies are growing at unprecedented rates. However, Chinese investment in Africa is not unambiguously advantageous.
