The Economic Dimensions of Chinese Investments in Africa (2000-2015)

Abstract

This study has been performed on the reality of the economic dimensions of China Investments in Africa during the period between (2000-2015). The Study adopted the descriptive analytical method by standing on the volume and the type of Chinese investments in the African continent. The study focused on the returns of these investment and the related exchange relations, on the economies of the African countries. The study found that the Chinese investments in Africa are direct investments that influenced the size and nature of the exchange between the two parties, which has been in favor of China's balance of trade. The study confirmed the increase of Chinese investments in the continent during the period (2000 -2013) but these investments began to decline thereafter. The study attributed this decline to the slowdown of China economy, instability in different African countries, in addition to the economic pressures exerted by western countries. All this has led to the decline in investments & exchange with the countries of the continent in general. In addition the study has reported that Chinese investments were concentrated on the field of natural resources and energy, which led to uneven impact on the economic indicators of the continent countries (poverty rates, GDP, growth rate & balance of trade. est.). In conclusion the study recommended that Chinese investments in Africa should be taken with more studies and analysis & with some additional control, monitoring and evaluation. Also African countries should re-evaluate their regional economic alliances and entities to avoid contradiction & lack of coordination in their investments policies, especially when dealing with foreign investments.