This paper uses Ghana as a case study to illustrate the extent to which Chinese manufacturing firms are driving manufacturing in an African country. Through a combination of desktop and field research, the author finds that the total number of Chinese manufacturing investments in Ghana indeed increased during past decade, but quite a few projects have been abandoned or not implemented because of the unfavorable investment environment. Small and large manufacturing projects can be found in different sectors, such as plastics, steel, pharmaceuticals, and others. All of the manufacturing investments target local or regional markets, either taking advantage of local raw materials or seeing opportunities in a market with little competition. Transitioning from trading to manufacturing investment and clustering are identified as the main patterns by which Chinese investors establish themselves in Ghana. Chinese firms source simple raw materials from local suppliers but import industrial supplies from abroad. Learning from Chinese business models, a few local businessmen have started their own manufacturing projects, mostly in the plastics recycling sector, but a lack of capital appears to keep some local players from moving up the value chain. Ghana’s weak economy itself is limiting technology transfer and local linkages between Chinese firms and Ghanaians.

Research Paper (undergraduate) from the year 2012 in the subject Economics - Case Scenarios, Xiamen University, language: English, abstract: Foreign direct investment (FDI) is one of the economic growth stimulus due to its associated variables such as capital investment, technical know-how, knowledge transfer and managerial competence required for economic growth. In the last decade, China has emerged on the international financial scene as both financier and investment partner to African economies. Many African economies such as the oil producing and exporting ones have witnessed streams of China’s FDI in their economies whereas non-oil exporting ones have accessed some of China’s FDI in selective sectors. This paper aims at investigating the relationship between China’s FDI and economic growth in Ghana measured by real average annual domestic product (GDP) per capita growth for the period 2001-2010. By using ordinary least squares (OLS) regression model, the result indicates that China’s FDI has negative significant effect on Ghana’s economic growth. However, it exerts different effects on value added in the three economic sectors.

This study aims to shed light on the knowledge transfer effects of Chinese investment in Africa's manufacturing sector with a concrete case study of Ethiopia. As of January 2015, 117 firms were registered with the Chinese Ministry of Commerce (MOFCOM) as investing in Ethiopia, reporting to have manufacturing activities. Since 2010 the Ethiopian government has put great emphasis on boosting the manufacturing sector and developing local technological and marketing capabilities, consciously guiding FDI from China and other Asian countries to the manufacturing sector. Such efforts offer a remarkable case to explore how African agents play an active role in shaping the dynamics and outcomes of engagements with China, which thus far has been seriously under-investigated. This study finds that the effectiveness of knowledge transfer by foreign investors is largely decided by industrial conditions in the host country and forming manufacturing clusters is a helpful approach to improve learning. This paper examines knowledge transfer mechanisms between Chinese investments and Ethiopian firms, institutions, and individuals at four different levels in the manufacturing sector. The lessons learned from this case may provide insights into China-African cooperation and Africa's development process in general.

What are the impacts of Chinese investment in Africa? Is it transforming economic development on the continent? This book is different from many other studies of this issue, as it unpacks the ‘black box’ of technological and learning spillover effects from Chinese firms to others. Rather than using econometric tools, which has now become a standard approach and come with their own set of challenges, the authors investigate the interactions between Chinese investors and African firms in terms of the transfer of technology and learning and explain why such interactions are rare. Only by understanding the reasons behind this rarity can approaches be developed to promote spillovers.

China leads the world when it comes to investment and influence on the African continent. The extent of Chinese investment in Africa is well known and much has been written about China’s foray into Africa. However, most of the available material has approached this issue by looking at China as the ’New Colonialist’ – more interested in Africa’s vast natural resources than working in partnership for sustained development. Whilst China’s interest in Africa’s resources is evident, it is just half of the story. China’s foray into Africa goes beyond its appetite for natural resources and into the realm of geo-politics and international political economics. For example, China is all too aware of how it can cultivate Africa’s support on global issues at the United Nations and at other international fora. Breaking free from the binary arguments and analysis which characterize this topic, Professor Abdulai presents a refreshing perspective that China’s foray into Africa can produce win–win outcomes for China and Africa – if Africans really know what they want from China. Hitherto, each African country has tended to engage China with an individual bucket list; acting in isolation and not as part of a wider continent (indeed Africa and the African Union does not yet have a coordinated policy towards China). For Africa to be able to do that it needs to know where China is coming from, the factors that contributed to its awakening and success, and the benefits and possible pitfalls of this foray, in order to better position itself for a win–win engagement with China. This book will be a valuable read for policy makers, think-tanks and students of Africa-China studies programmes alike.