Some Western policymakers see China as a threat to their work in Africa. But when taking a dynamic perspective, as in this working paper, Chinese and Western activities can be seen as complementary. In this way, an entirely different picture emerges.
This paper discusses the entry of China into the game of foreign finance in Africa. It analyses the scope, destination and sectoral distribution of Chinese financial flows and trade in comparison with Western patterns and trends of aid, foreign direct investment and trade.
China’s foreign aid and manufacturing investment flow to Africa’s physical infrastructure and productive sectors of agriculture and manufacturing fill the vacuum which emerged when Western financial flows shifted to other sectors and activities. In contrast, China’s trade patterns with Africa highly resemble those of Africa’s leading Western trading partners.
See below for the full working paper and brief video interview with co-author Tobias Broich.
WORKING PAPER (103 pages)
AUTHOR INTERVIEW (2.47 minutes)
MEDIA CREDITSFlickr / Yardley / B.Intro / W.Vota