Study On The Evaluation Of Investment Environment In Africa

In recent years, the investment environment in African countries continue to improve,which offers the global economy new opportunities for growth. Africa is known as "the world’s last piece of fertile land for investment", China’s outward direct investment in Africa has begun to accelerate. In 2013, President Xi Jinping put forward the strategic vision of " One Belt And One Road " to further strengthen mutually beneficial cooperation between China and African countries, which shows that the prospect for China’s outward direct investment in Africa is broad in the future. Investment environment is an important factor affecting outward direct investment, and evaluation of investment environment in Africa have been neglected in the existing literature. Therefore, for China’s outward direct investment in Africa, evaluating the investment environment in Africa has some theoretical and practical significance.Investment environment in this paper consists mainly economic factors, politics factors, legal and policy factors, labor and education factors and financial development factors. This paper selected sixteen index of these five categories to do the empirical analysis of the investment environment of thirty-one countries in Africa in 2013, getting the results of the evaluation and ranking. According to China’ outward direct investment into the extent consistent with the results of the evaluation of these thirty-one countries, the two categories were selected. South Africa and Angola are selected to analyze the specific investment environment. Combined with the current situation of China’s outward direct investment in the two countries, it summed up China’s outward direct investment in South Africa is mainly affected by the host country’s investment environment, and the investment in Angola is mainly affected by resource-oriented motivation. Then by introducing the “Angola mode”, the paper refuted “Plundering resources theory” and “New colonialism”, and proposed the challenges and improvement. And it analyzed the other factors affecting China’s outward direct investment in Africa. Finally, about China’s outward direct investment in Africa, the paper put forward some proposals, such as making investment environment of the host country as an important basis for the choice of investment and increasing financial support and policy support.