Monday, June 10, 2013

China's FDI In Africa Understated

China's cumulative FDI stock in Africa is officially estimated to be about $20 billion, a modest amount that accounts for only about 3 percent of Africa's total FDI stock.  Standard Bank of South Africa published a report on 22 May 2013 titled "Chinese Private Sector Investment Is Understated, Undercover" that suggested this amount is understated by at least $5 billion.  As much as one third of China's investment projects may be excluded from its total estimated $20 billion FDI stock in Africa.

I have been making this argument for years, but believe Standard Bank's $5 billion figure still significantly understates the actual amount.