A NEW STRATEGY OF ECONOMIC GROWTH IN SUB-SAHARAN AFRICA BY LEVERAGING CHINESE DIRECT INVESTMENTS

Abstract

The premises of this thesis work are rooted in the ever-present recognition of China’s solid and rapidly expanding presence in Sub-Saharan Africa and of the undeniable great increase in Sub-Saharan Africa’s economic ties with China over the past decades.

Sub-Saharan Africa is a macro-region where a prolonged period of economic growth has not been accompanied by a substantial progress in poverty reduction and actual improvements in living standards. Moreover, Sub-Saharan Africa’s economic growth has been living difficult years of slowdown. The thesis work aims at investigating how Sub-Saharan Africa can take the most from and maximize the benefits of its increasing strong ties with China, one of the most dynamic economic powers in the world, in order to accelerate growth, make growth inclusive and boost development outcomes.

After providing a strictly economic analysis of Sub Saharan Africa’s growth, the thesis provides an overview on foreign direct investments and on their positive perception as catalysts of the process of economic growth. Thereafter, the thesis work inspects FDI flows’ trend in SSA and the reasons why SSA has turned out to be unattractive for FDI, highlighting the importance and the peculiar characteristics of Chinese FDI flows into the region. The thesis work wants to underline the significant role played by China as investor and builder of “connectivity” for Sub-Saharan Africa, looking also at the recent development of China’s interest in the region.

This work inspects the issue deviating from a supposed neo-colonial predatory hunger of China towards Africa’s resources and from the perception of China as a threat rather than as a source of opportunities to be conveniently seized, which is the standpoint that has suffused much of the literature dealing with China’s engagement with Africa.