Comparison of incentives of Chinese private and public investments and their economic-political impacts in Sub-Saharan Africa, focusing on Nigeria and Kenya in the years 2003-2021

The bachelor’s thesis examines the different incentives of Chinese public and private investments and their economic-political impacts in Sub-Saharan Africa, focusing on Nigeria and Kenya in the years 2003-2021, based on data analysis and literature research. In the last two decades, the volume of both kinds of investment has increased considerably, but their motives are different. While private investments are driven by a growing consumer market, cheap labour cost and higher profitability of investment, public investments mainly pursue strategic and political interests, such as access to natural resources or the expansion of influence in the international field. Private and state-owned companies also operate in different sectors of the economy. The economic-political impacts were assessed based on analysed data from the World Bank, China Research Initiative and field research by the consulting company McKinsey. The results of the analysis suggest that the relatively biggest impact on the economy may be growing dependence on Chinese imports and loans. But for private companies, there is a significant technological transfer and important assistance with SSA economies digitalization. The share of FDI in the performance of the economy is still insignificant. However, most FDI goes to the construction sector, where the construction of transport infrastructure is an important factor for stimulation economic activity.