Foriegn Investments: China’s Economical Infulunce on African Acountries

China has completed thousands of transactions throughout the world since the year 2005 and Africa is the third largest destination of Chinese investments after Asia and Europe. The available data shows that China’s investments towards sub-Saharan Africa significantly reduced in the year 2017 after the reduction in aggregate China’s investments.
China has invested around one-quarter of all the investments in Angola and Nigeria. Nigeria has remained to be a large investment partner of China in Africa. The Chinese government pledged $60 billion at FOCAC summit in 2015 and dedicated $5 billion to Nigeria. Most recently, Nigeria received more funds from the Chinese government for railways construction. China is currently supporting two standard-gauge railway projects in the country. The coastal rail line from Lagos to Calabar will support peacekeeping missions in the Niger Delta region and therefore improve oil investment in the region – oil has been one of the key interests of the Chinese government in Africa.
In the whole continent, the investments are concentrated on energy and transport. As we have already mentioned China has hugely invested in Nigeria’s railway line. The country is also building railway lines in Ethiopia, Kenya, Zambia, and other countries. For example, the Export-Import Bank of China offered 85 percent of the Addis Ababa Light Railway (costing $475 million), which is now serving around 4 million residents of the city. Even though the investment in Energy is made up of gas and oil investments, it also consists of investments in clean energy sources like hydropower. China is among the leading global investors in renewable energy sources. In 2017, they invested $3 for each dollar the United States invested in renewable energy. China has invested heavily in the following countries.

Malawi

credit: Wikipedia
Around eleven years have passed since the Malawian government turned its back on Taiwan and opted for the People’s Republic of China, a diplomatic move that most social and economic commentators heavily criticized at the time. By December 2007, Malawi had established diplomatic links to the Chinese government and the then foreign affairs minister, Joyce Banda (who later became the country’s president) announced the changes in 2008.


In the year 2016, China agreed to finance several projects in Malawi, which would cost $1.79 billion. The projects would include a 300-megawatt power plant that would cost $600 million and $500million would go to fiber optic cables installation. The $285 million would finance construction of the Chileke International Airport.