Africa-China Relations: A Case of Foreign Direct Investment and the Democratic Republic of Congo’s Mining Sector

Abstract

Abstract Since independence, Foreign Direct Investment has been central to African Development and economic expansion. Herein, this paper traces the role and impact of the FDI in the mining sector of DRC. The analysis is based on the institutional FDI fitness theory coined by Saskia Wilhelm in 1998, which suggests that states with good governance, strong state institutions, and stable political capacity attract the most FDI in emerging economies. However, China’s mining investment in the DRC has refuted Wilhelm’s theory. As such, this research will analyze the role and impact of FDI in the mining sector of the DRC, with a focus on China’s mining investment and its impact on the country’s economic development. The institutional FDI fitness theory will serve as the conceptual framework for the research. Data collection will involve a thorough literature review and analysis of secondary data sources, such as academic journals, reports, and government documents. Furthermore, the mining profile, type of investment, and investment achievements will be assessed to provide a comprehensive understanding of the topic. The data will be analyzed using content and thematic analysis to identify patterns and themes that emerge from the data. Overall, a qualitative case study approach will be appropriate for this research as it will allow for an in-depth analysis of the role and impact of FDI in the mining sector of the DRC. It will also provide insights into the complexities of the relationship between FDI, governance, and economic Development in Africa. One significant finding has conceded that government fitness does not necessarily attract investment. Instead, a weak state capacity and domestic policy create easy access to investment that does not align with the host country’s development. This finding has affirmed the argument that African countries should engage in trade rather than aid since aid has kept African economies in a circle of dependency.