Tuesday, April 6, 2021

Chinese Investment Surpasses US Investment in Africa

 The London School of Economics (LSE) blog posted on 2 April 2021 an analysis titled "Why Substantial Chinese FDI Is Flowing into Africa" by Shirley Ze Yu,  senior visiting fellow at LSE.  

Drawing on information from the China Africa Research Initiative, the author notes that since 2013 China overtook the United States as Africa's largest equity investor as measured by foreign direct investment (FDI), averaging about $3 billion annually.

Comment:  True, but while US FDI to Africa since 2013 has been embarrassingly low and even negative during several years, Chinese FDI has been modest and generally flatlined.  This discussion also leaves out the more significant movement to Africa of FDI from the European Union and wealthy Arab states.  There is more to this story than the analysis suggests.

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