This is how much China has poured into Africa to beat UK and US as the continent's top investor

desmond frimpong

September 20, 2017 1:44 PM

The basis of Chinese investment in Africa is now changing

As a long-term investor and developer of infrastructure in Africa, China spending on the Africa continent over the years keep surging.

Experts say, most Chinese foreign investment in Africa has been aggressively one-sided and based more on politics than an objective business case. But amidst this popular notion, China is poised to take advantage and strengthen its influence on the continent.

According to Ernst & Young’s Attractiveness Program Africa 2017, Foreign Direct Investment (FDI) from China to Africa grew sharply with a 106% rise in projects. On the other hand, FDI projects by the US and UK fell 5.2 and 46.8% respectively.

It is fair to advance the argument of China being behind the UK and the US in terms of number of FDI projects on the continent

Nonetheless, the value of China’s FDI project was vastly superior. In 2016 China held the record of having its FDI investments worth more than the other foreign national investors analyzed in the report.

EY says explains that China’s 2016 FDI input in Africa ranked highest across three main metrics measured projects, capital investment and jobs—since the annual report was first published.

In general, last year was topsy-turvy for FDI in Africa. While the number of projects and the jobs created fell compared to the previous year, average FDI investment grew 31.9% to $139 million from $92.5 million in 2015.

desmond frimpong