FOREIGN DIRECT INVESTMENT IN AFRICA: SECURING CHINESE INVESTMENT FOR LASTING DEVELOPMENT, THE CASE OF WEST AFRICA

Paulin Houanye and Sibao Shen

Review of Business and Finance Studies, 2012, vol. 3, issue 2, 103-117

Abstract: At the end of the 20th century, when investors were actively seeking a favorable and secure place for their capital investment, the African continent rarely crossed their minds. Recent misgivings experienced by financial markets around the world and the increased demand of natural supplies forced investors to focus on Africa. This circumstance, for over a decade, has put all Africa, including both developed and industrialized countries in an embarrassing position with very low foreign investment. It is not possible to discuss Africa’s development without referring to the current Chinese investment in Africa. In the past twenty years, China’s interest in Africa has grown significantly. This has simultaneously aroused intense debates within the international community because it has the ambition to set up long-term partnerships with African countries. This new state of affairs will inevitably create legal protection problems for the interests of each party. This article examined the impact of China’s investment on African countries development. We examine how Chinese investors face challenges in Africa and what legal protection the host country provides to the investors to secure their profit and at the same time protect their own interest.

Keywords: Foreign Direct Investment; Foreign Protection of International Investment; Developing Countries and Regional Integration (search for similar items in EconPapers)
JEL-codes: F21 K33 P33 (search for similar items in EconPapers)
Date: 2012
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