Abstract
China’s resource-driven foreign policies have led to closer relations with Africa where mineral resources remain the primary draw for Chinese investment. The expanding Chinese presence in Africa’s extractive industries has been portrayed as dominated by state-owned enterprises with central government sponsorship, taking the form of ‘package-financing’ where infrastructure was constructed to access mineral resources. Less attention has been paid to expansion of Chinese private enterprises which have become more significant in response to China’s ‘going out’ strategy in recent years. This study assesses the impacts of Chinese private firms investing in extractive industries particularly their impacts on rural communities in Cameroon. We show that the assumption that China’s state-owned enterprises are dominating extractive industries is not always the case and the Chinese private sector is becoming increasingly influential in Africa. In Cameroon, political instability, challenging investment conditions and environmental issues hinder all overseas investment, and terrorism has become a challenge for both recipient governments and foreign investors. Rural communities suffer the consequences of these constraints on investment. The conditions under which Chinese private sector investment could contribute to sustainable livelihoods in rural areas are discussed.
Published Version
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