Impact of Factors on Chinese Foreign Direct Investment in Africa Study

This report delves into the factors impacting Chinese Foreign Direct Investment (FDI) in Africa. The introduction provides background on FDI, its significance for economic and employment growth, and the motivations behind China's investments in Africa, including the role of Huawei and the demand for natural resources. The study aims to determine these factors, understand the objectives of Chinese companies, identify key issues, and analyze methods to mitigate any negative impacts. The research outlines the structure of the report, which includes a literature review, an overview of the African economy, methodology, empirical analysis, and conclusions with recommendations. The objectives include understanding the concept of FDI, examining Chinese company motivations, identifying influential factors, determining related issues, and analyzing ways to reduce negative impacts, all of which are explored through specific research questions. The report's structure is detailed, outlining each chapter's focus, from the introduction and literature review to the methodology, empirical analysis, and conclusions, providing a comprehensive analysis of Chinese FDI in Africa.

FACTORS IMPACTS ON CHINESE FOREIGN
DIRECT INVESTMENT (FDI) IN AFRICA

TITLE: Factors impact on Chinese foreign direct investment in Africa.
CHAPTER 1: INTRODUCTION
1.1 Background of the study
Foreign direct investment is investment made through company or a person on single
country inti business interested located in the other country. It takes place when investor
established the foreign business related operations or acquire the foreign business assets in
foreign firm. This is an organisation that takes controlling the ownership in business entity in the
other country. The foreign direct investment takes place when investor established the foreign
business operations consisting establishing the ownership.
1.2 Significance of the study
The present investigation is based on determine the factors impact on Chinese foreign
direct investment in Africa. The foreign direct investment is helpful in enhancing the economic
and employment growth. The significance of this report is to know about the reasons of China to
investing in the Africa. The Chinese trade has contributed to the Africa Economic growth. FDI
mainly flow rose to the $3.5 billion. Foreign Direct Investment of China in continent is mainly
reached around $25 billion. China became largest trading and also development partner of SSA
with the trade reaching $170 billion. Through conducting this investigation, researcher can
enhance its understanding about determine the reasons due to which Chinese companies are
making FDI in Africa. Other than this, researcher mainly conduct the investigation for personal
interest. As this will help in enhancing the knowledge as well as understanding regarding the
Foreign Direct Investment. This helps in enhancing the research skills to conduct the similar kind
of investigation in future. Huawei is Chinese multinational technology firm headquarter is in
Guangdong. This mainly designs, develop and also sells the telecommunication equipment’s and
also consumer electronics. The Chinese FDI in Africa surged at the time of global crisis when
local governments are introduced the prudential loan programs. FDI by china in Africa was
linked with the demand of china for natural resources.
1.3 Objectives of the study
Aim

Research aim expresses intention or aspiration of research study. This summarise in
single sentence what to achieve at end of research project. It is necessary that aim should be
phrased and specific in such a manner that this is possible to determine when this has been
attained. Aim require to be explained in the clear manner because this explains intentions and
hope to be attain.
The main aim of this research is “To determine the factors impact on Chinese foreign
direct investment in Africa.” A study on Huawei.
Research Objectives
The research objectives mainly explained what need to be attained through the present
investigation. These are expresses in lay terms and directed as much to consumers as to an
investigator. The main objectives of research project provide abstract what need to be attained
through study. These are specific achievements; an investigator hopes to attain through study.
The objectives related to specific subject area are given below:
 To understand the concept of foreign direct investment.
 To examine the reasons due to which Chinese companies are making FDI in Africa.
 To identify the factors that are impacting on Chinese foreign direct investment in Africa.
 To determine issues related to Chinese foreign direct investment in Africa.
 To analyse ways to reduce the negative impact of Chinese foreign direct investment in
Africa.
Research Questions
 What is the foreign direct investment?
 What are the reasons due to which Chinese companies are making FDI in Africa?
 What are the factors that are impacting on Chinese foreign direct investment in Africa?
 What are the issues arise related to Chinese foreign direct investment in Africa?
 What are the different ways to reduce the negative impact of Chinese foreign direct
investment in Africa?
1.4 Structure of the research
Chapter one: Introduction- Introduction is the primary chapter in which the summary of
Investigation regarding the specific research area is mentioned. There has been aim and objective
regarding the particular area developed.

Chapter two: Literature review- Literature review is one of the main part of an
investigation because it attains all the research objective based on the particular area. In order to
Collection of data in literature review, secondary sources have been used such as internet
sources, scholars, articles, journals and others. These are helpful in providing the detailed and
descriptive information regarding the particular area.
Chapter three: Overview of Africa Economic- This chapter states about the overview
of the African economy. This provides information about the economic performance of Africa
and also its trade performance.
Chapter four: Methodology and methods- Research methodology is one of the main part
of an investigation because it is stated about the techniques and tools for Collection of data and
also analysing it. This includes the research philosophy, research approaches, data collection
methods, data analysis, sampling and others.
Chapter five: Empirical Analysis and Results - This Chapter stated about the ways
regarding analysis of information by using the different tools and techniques. There has been a
statistical technique used for analysing the data which help in providing the empirical the search
result. There has been including the research findings from the collected data.
Chapter six: Conclusions and Recommendations - It is the last chapter in an
investigation that stated the conclusion and recommendation, limitations and also the future
research. Conclusion and Recommendation are based on the whole research project. There has
been stated about the research limitations which arise at the time of conducting the investigation.
There has been research suggestion give conducted in future mentioned.