Chinese FDI in Africa, natural resources and the energy transition challenges

In this study, we assess the effect of natural resources on FDI flows to Africa within the energy transition context. To do this, and given China’s growing presence in Africa, we focus only on China as a main investor in Africa. We analyze its outward FDI flows, at micro and macro level to 30 African countries over a 19-year period (2000 to 2018). Our results show that not all natural resources are attractive factors for FDI. Mineral resources and natural gas were found to be key determinants of Chinese FDI while oil resources have a negative impact on Chinese FDI flows to Africa. These results might suggest an engagement in the energy transition process which requires specific mineral resources.