Factor Analysis Of The Investment Environment In Africa As Well As The Inspiration For Chinese Companies On Making Direct Investments In Africa

With the deepening of economic globalization, African countries have begun to gradually integrate into the trend of development among the world. Both political and economic environment in Africa has improved in some extent. Meanwhile, Africa has been introduced policies to attract international investors to invest directly in Africa. Africa has become the focus of investors around the world.Since the 21st century, following the sustained economic development, China's foreign direct investment has been expanded year by year. Africa is becoming one of the important investment choices for the Chinese investors. However, numerous Chinese enterprises invested in Africa, which operating conditions vary widely. There are many high-yield investors in Africa, at the same time, many projects are at a loss or even bankruptcy. This problem has seriously affected the enthusiasm of the investors who would invest in Africa. The paper, based on a detailed analysis of the African environment, is trying to explain the decision-making of the direct investment in Africa on the view of the micro-business investors'point.The article is divided into five parts. The first part focuses on the purpose of the author's writing, the writing ideas and the brief description of the author's analytical methods. The second part summarizes the domestic and foreign scholars'studies on the investment environment of Africa and investment decision-making, and introduces the studies of "C-D gap" model, in order to lay the theoretical basis for the entire thesis. The third part of the paper, using of the "C-D gap" model, analyses theoretically the reasons of the investors'success or failure may exist. The fourth part analyses the investment environment in Africa specific. On the one hand conduct detailed analysis on the investment environment in African countries by means of factor analysis method, drawn rank African country's investment environment and gain the main factors which affect the investment environment in Africa; on the other hand, the writer analyses on the main factors restricting the investment environment in Africa and the corresponding response, to provide reference for the investors. Part V briefly introduces the situation that Chinese investors'invest in Africa, contact the main factors affecting the African investment environment, from the investment preparation stage, stage of investment and investment following stage, make policy recommendations, and provide reference for Chinese investors who invest directly in Africa. Part VI concludes.Unlike the previous direct investment theory, the author tried to explain the complex environment of the investment decision investors in Africa by the thinking of behavioral economics way. Article introduces "C-D gap" model, analyses the reasons for success or failure of investors in investment decision-making, combined with the analysis of the factors affecting the investment environment in Africa, gives the specific policy recommendations for our investors, on the investment decision-making reference, who invest in Africa.