Chinese Foreign Direct Investment in Africa: The Case of South Africa and Nigeria

Abstract

China’s resurgence into the modern international system came after the successful take-over of political power by the Communist Party in 1949. And then after, through successive economic, administrative and social reforms, China managed to become the second largest economy of the world in 2010. The burgeoning national economy accompanied with modernization of the military, active engagement in International Organizations and expansion of Chinese diplomatic influence are among the implicating factors of the rise of China in this nearly unipolar international system. Among the indicators of China’s resurgence into the international system is the country’s ever increasing trade and investment activities across the world. And the sub-Saharan Africa is among the Chinese trade and investment recipient regions. Thus, this article tries to assess the trend and sectors of Chinese investment in Africa focusing on the two continental economic giants’ i.e. South Africa and Nigeria. It was found that the Chinese investments in South Africa and Nigeria are more resource-seeking and dominated by state-owned companies.

Keywords: China in Africa, Nigeria, South Africa