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Abstract

This paper seeks to analyze the determinants of Chinese foreign direct investment in Africa with regards to the global green energy transition. China’s economic growth has soared in the past few decades and China currently dominates the renewable energy sector. This paper tests whether Chinese investment in Africa is attracted to countries that produce specific critical minerals utilized in green technology. This paper employs an Ordinary Least Square (OSL) model on Chinese foreign direct investment flows to 52 out of the 54 African countries for the period 2018 to 2022. This study finds that Chinese foreign direct investment in Africa is resource seeking, particularly to countries producing coal and copper.

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