China-Africa Economic Cooperation: Chinese Companies’ Contributions to African Development - The Cases of Mozambique and Angola

Abstract

Currently Africa is experiencing a massive presence of Chinese firms driven by Chinese demand for resources. However, in today’s world is impossible to discuss FDI without China. This paper states that China’s connection with FDI is due to its demand for natural resources, mainly oil, minerals, timber, etc to respond the local demand. Currently, these resources are found in Africa with uncountable resources yet to be exploited due to the shortage of capital, technology, skills, education and institution framework. This paper highlights the tangible benefits of Mozambique and Angola from China. The results show that China’s massive engagement with these countries is due to their unfinished natural diversified resources. We stress that Sino-Africa Cooperation, has two FDI facets; the first lies in the fact that China sees FDI as a source for capital formation; secondly; Africa sees FDI as a means to development and promote economic growth in the region.