Expected Future Trends in Chinese Outward Direct Investment in Africa

Abstract

This paper presents an analysis of Chinese outward direct investments in Africa and projection of future investment flows. The motives that have led to a noticeable increase of these investments in Africa in the last 3 years were both based on the expansion to new markets and on cost minimization. The determinants associated with these motives in Africa are both primary commodity import, size of arable land, GDP, rule of law and trade relations.