Discussion Paper
Abiodun Egbetokun
Chinese and other foreign investments in Africa’s development
Africa has become a focal point of foreign investments, particularly from China whose economic engagement with the continent has surged in recent years. However, the disproportionate focus of these investments on resource extraction raises concerns about long-term benefits for Africa. This paper examines the development implications of Chinese investments, with a focus on employment. The results show that while FDJ flows have limited short-term effects, the stock of accumulated investments tends to support long-term employment creation. However, this requires a more strategic approach to foreign investments - one that prioritises the strengthening of local regulatory frameworks to ensure investor accountability, promotes value-chain upgrading and embraces regional cooperation under the African Continental Free Trade Area (AfCFTA) to negotiate more favourable terms with foreign partners.
Author: Abiodun Egbetokun, De Montford University, UK
Year of publication: 2025
Language: English
