Chinese investment in Africa: how the New Normal can leverage Agenda 2063 for sustainable economic co-operation

Abstract

Since the 1950s, China-Africa co-operation thrived at the back of China’s rapid and accelerated growth. After the financial crisis of 2007-2009 however, and especially since 2014, the realities of China’s New Normal which requires internal structural transformation has created the need for outward structural changes with partners. This paper attempts to provide the direction for Chinese investment in Africa under the new economic growth model by analysing the flow of Chinese investment to Africa and the role in economic development. Findings show that market and resource seeking principles are still driving Chinese investment on the continent with opportunities and challenges going forward. An ‘integration-interaction’ framework is used to demonstrate how Chinese investment in Africa can be streamlined for improved and effective mutual development.