In recent years, Chinese investments in Africa have surpassed those of traditional Western donors, making China the continent’s largest investor. Chinese foreign direct investments (FDI) offer significant potential for economic growth by providing essential infrastructure, capital, and industrial capabilities. However, the nature and conditions of these investments differ markedly from those of Western donors, often leading to debates on their true benefits and potential drawbacks. China’s approach to aid and investment in Africa, characterised by fewer conditions compared to Western aid, has raised concerns about the long-term implications for governance and economic independence in recipient countries. Critics argue that this “rogue aid” can support corrupt regimes and increase debt burdens, though empirical evidence on these claims is mixed. While some studies highlight the positive impacts of Chinese investments on productivity and industrial growth, others point to negative effects such as heightened competition for local businesses and increased economic dependency.

This project aims to examine the sectoral evolution of Chinese FDI in Africa and its impact on employment, a critical issue given Africa’s high unemployment rates. The project will provide a nuanced understanding of the role of Chinese FDI in Africa’s development. The findings will inform strategies that can better integrate Chinese and Western investments to support Africa’s industrialisation and economic diversification, to maximise the benefits of such investments while minimising potential risks.