ISSN (Online): 2321-3418
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Economics and Management
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Bridges or Chains? The Growing Footprint of Chinese FDI in Africa

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DOI: 10.18535/ijsrm/v13i09.em06· Pages: 9700-9717· Vol. 13, No. 09, (2025)· Published: September 10, 2025
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Abstract

This study critically examines the evolution, motivations, and economic impacts of Chinese Foreign Direct Investment (FDI) in Africa, exploring whether it serves as a bridge to sustainable development or a chain of dependency. Drawing on empirical data and case studies, the paper traces the historical trajectory of Chinese FDI, identifies key economic, policy, and geopolitical drivers, and evaluates sectoral and country-specific trends. It highlights the positive contributions of Chinese FDI to GDP growth, job creation, technology transfer, and infrastructure development while also addressing concerns related to resource exploitation, debt sustainability, neocolonial influence, and competition with local enterprises. The study emphasizes the importance of strengthening institutional capacity and enhancing local linkages to fully leverage Chinese investments. Future policy directions are discussed, with a focus on emerging sectors such as renewable energy, the digital economy, and agro-processing. The paper concludes with strategic recommendations for African governments to align Chinese FDI with national development goals and maximize its developmental impact.

Keywords

Chinese foreign direct investmentAfrica-China relationsdebt sustainabilityinfrastructure developmenteconomic impact 1 Introduction In 2023China became Africa‟s largest bilateral trading partner for the 15th consecutive yearwith bilateral

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Author details
Lloyde Quatrid Fana Wouani Assen
School of economics, Zhejiang Gongshang University, 310018
✉ Corresponding Author
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Andreas Helena Tulela
School of tourism and urban rural planning, Zhejiang Gongshang University, 310018
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