China’s Outward FDI in Africa: Enterprises with Different Ownership Types

Abstract

The purpose of this paper is to discuss the consequences of China’s outward direct investments in Africa in terms of enterprises with different ownership types. First, this paper contributes to the examination of a large number of Chinese enterprises’ investment projects in Africa. Second, in addition to the investment activities of central state-owned enterprises, investment activities initiated by local state-owned enterprises and private enterprises are also addressed in this paper. Third, this paper demonstrates the diversity of Chinese investment in Africa through the discussion of a large number of cases. We find that the motives of central state-owned enterprises comply with government policies. However, most private enterprises and non-central state-owned enterprises invest in Africa for profit considerations. This paper concludes that China’s investments in Africa are diverse and complex and cannot be explained using a single model of the extant theories.

Keywords

• China
• outward FDI
• Africa
• state-owned enterprises
• private enterprises