Sino-Africa Investment Relations: The Good, The Bad and The Ugly
Keywords:
Investment, Relations, Economy, Chinese, Africa.Abstract
China’s investment activities in Africa have attracted significant interest in academic, policy and media circles in the last one decade. Adopting country case studies analysis, findings indicated that Chinese investment relations with Africa have its good, bad and ugly sides. On the good side, China has established special economic zones which have the potential to build economic linkages with the local economy. However, the linkages are mainly forward, involving logistics, forwarding, and insurance and financial services. Backward linkages are fostered to the extent that the Chinese firms contract out transportation and catering services for their employees and sub-contract with local firms. The bad side includes the limited employment quota for local citizens, poor labour standard, limited technology transfer, and the quality of Chinese construction. The ugly side includes tax evasion and support to dictatorial regimes in Africa. Chinese companies should be well controlled and the legislation that guides their business conduct should be fully enforced.
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