Dragon's Dividend or Debt Trap? The Implications of China's FDI in Africa for African States

ABSTRACT: The paper examines the increasing influence of China's foreign direct investment (FDI) in Africa since the early 2000s, analysing its implications for both recipient African nations and traditional Western donors. It discusses the motivations behind China's investments, including resource acquisition and strategic policy objectives, while acknowledging a growing focus on market size. The paper also explores the diverse impacts of Chinese FDI on Africa's development, presenting mixed opinions on its effectiveness in fostering economic growth, infrastructure, and industrialisation, alongside concerns regarding debt sustainability and environmental degradation. Finally, it highlights the competition between China and Western powers for influence in Africa, suggesting that this dynamic offer African nations increased leverage to pursue their own development paths.