Chinese investment in sub-Saharan African countries

Omar Abdelhakim

Master's thesis

Abstract:

While the Western relationships with Africa has been understood as aid and cooperation, the Chinese investments in the region are often perceived as neocolonial plundering of African resources and geopolitical strategy. Based on a close reading of relevant literature and interviews with various stakeholders the thesis scrutinizes Chinese investments in sub-Saharan African countries, their purpose and their benefits/drawbacks to each party involved. After analyzing the investments and the situations surrounding them, it has been deduced that while Chinese firms have been overstating project costs to get a better return on natural resources, African leaders should also share the blame for not putting their citizens’ interest at heart, for accepting extra incentives or bribes, along with signing loan deals that engulfs their countries with an unsurmountable amount of debt could threaten the sovereignty of their nations.

Abstract:

While the Western relationships with Africa has been understood as aid and cooperation, the Chinese investments in the region are often perceived as neocolonial plundering of African resources and geopolitical strategy. Based on a close reading of relevant literature and interviews with various stakeholders the thesis scrutinizes Chinese investments in sub-Saharan African countries, their purpose and their benefits/drawbacks to each party involved. After analyzing the investments and the situations surrounding them, it has been deduced that while Chinese firms have been overstating project costs to get a better return on natural resources, African leaders should also share the blame for not putting their citizens’ interest at heart, for accepting extra incentives or bribes, along with signing loan deals that engulfs their countries with an unsurmountable amount of debt could threaten the sovereignty of their nations.

Keywords

china, sub-saharan africa, investment

Keywords

china, sub-saharan africa, investment

Language used: English

Date on which the thesis was submitted / produced: 25. 1. 2019

Thesis defence

• Date of defence: 11. 6. 2019
• Supervisor: Tomáš Ryška
• Reader: Patrik Sieber

Vysoká škola ekonomická v Praze

Master programme / field:
Ekonomika a management / International Management