Chinese Investments in Africa

In: Business and Management

Submitted By mohammedhayath
Words 2222
Pages 9
GLOBAL BUSINESS OPERATIONS
Chinese investments in Africa
Why have Chinese companies found the emerging markets of Africa less risky and a more attractive proposition than western multinationals?

Mohammed Hayath Nisar Ahmed
MIB 35 – Group B Grenoble Graduate School of Business

P a g e | 1

The distinct existence of Chinese multina‐ tional corporations on the global stage is al‐ tering the landscape of international busi‐ ness and politics. Western organizations, once with virtually undisputed command over the financial resources and requisite political ties to dominate global business, are now being challenged by a host of emerging country corporations with China being at the lead. Extremely competitive and strongly backed by the state, Chinese multinational corporations are on an acqui‐ sition spree that is bagging key resources and market share across the developing world. In many respects it is Africa, a conti‐ nent rich in natural resources and under‐ex‐ ploited markets that has only limited histor‐ ical ties to China, which is serving as an at‐ testing ground for the new Chinese multina‐ tional corporation. China’s investments in Africa have become ever more diversified in recent years. While oil and mining remain an important focus, Chinese foreign direct investment (FDI) has

flooded into everything from shoe manufac‐ turing to food processing. Chinese firms have also made major investments in Afri‐ can infrastructure, targeting key sectors such as telecommunications, transport, construction, power plants, waste disposal and port refurbishment. Given the scale of Africa’s infrastructure deficit, these invest‐ ments represent a vital contribution to the continent’s development. There are many examples of China’s flourishing interest in African infrastructure. For instance in Zam‐ bia, Chinese investors landed a deal…...

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