Economic transformation in Africa: What is the role of Chinese firms?

Abstract

African countries face an economic transformation gap. Given the large and growing Chinese presence on the African continent, a fundamental question is whether Chinese firms contribute to, or hinder, economic transformation in Africa. This article conducts a scoping review of over one hundred sources, examining the pathways through which Chinese firms can affect economic transformation. On balance, the literature points to a positive role of Chinese firms. Africa-China trade leads to mixed results, while Chinese investment and infrastructure construction are found to contribute positively to transformation. Chinese firms are also found to support capacity building, spillovers and innovation in African countries.

China in Africa: Assessing the Consequences for the Continent’s Agenda for Economic Regionalism

“…The announcement of the Belt and Road Initiative in 2013 brought a shift in the geographical focus of Chinese external policies. Chinese lending to Africa is less central in the Belt and Road Initiative than it had been in the previous decade (Calabrese & Tang, 2020). In this regard, we can observe that there is no direct Chinese commitment to the deployment of the AfCFTA.…”

“…Second, this approach to international cooperation is consistent with what we may call the "Asian model of development," which focuses on upgrading productive capabilities. Third, this pattern of cooperation intrudes little on internal affairs like policy design or macroeconomic management, and China has consistently followed the rule of non-interference in internal affairs in its diplomacy (Calabrese & Tang, 2020).…”

Economic relationships between Sub-Saharan Africa and China: An alternative theoretical and policy paradigm?

“…Indeed, manufacturing is more prominent in Chinese FDI than US FDI in Africa (Eom et al, 2017). Similarly, Chinese firms have contributed to the enhancement of workers' skills in SSA host countries, and knowledge transfers occur (Calabrese and Tang, 2020). Equally, it may be considered that the BRI has a developmental dimension that is similar to China's domestic development model, i.e., "pragmatically hybrid" (Alves and Lee, 2022).…”

Pourcentage de la population couverte par les réseaux 3G et 4G en Afrique, en Asie et en Amérique latine et Caraïbes (ALC), 2004-20

“…Lin et Wang (2017) dénoncent par exemple le manque de transparence, le recours systématique à l'aide conditionnelle, l'absence de débouchés créés pour les travailleurs locaux et la médiocrité des normes professionnelles et environnementales associées aux investissements chinois. À l'avenir, la pleine exploitation de ces opportunités financières exigera une planification stratégique et une approche concertée de la part des gouvernements africains pour veiller à ce qu'ils ne soient pas tenus par des engagements de long terme contraires à leurs intérêts nationaux (Calabrese, 2019 ;Calabrese et Xiaoyang, 2020).…”