China has become a major investor in Africa, most activity taking place within only the last decade after the government's initiation of its "go abroad" policy. Rarely, however, is this investment placed in an international context. The investment positions of other nations in Africa highlight not just China's diverse interest in the continent, but increased recognition of Africa's economic potential.  

Fastest, not largest

China has received a lot of attention for its investment activity in Africa. What is less understood is how this investment compares with that of other nations. It's not just China that has increased its investment position in Africa. From 2000 to 2009, total overseas foreign direct investment (OFDI) stock in the continent increased more than four times. Chinese investment has just accelerated at a faster pace than others. In 2003, China's OFDI in Africa was comparable to Denmark's; by 2009 it had increased 19 times to reach over $9.3 billion, according to China's Ministry of Commerce, behind only five OECD (Organization for Economic Cooperation and Development) countries - just short of Switzerland and the Netherlands.

The top three investors in Africa according to the OECD are the UK ($61.4 billion), France ($60.8 billion) and the United States ($44.8 billion). However, what China lacks in terms of size in comparison to these traditional powers, it makes up for with a more diverse presence on the continent.

Of the 53 countries that comprise Africa, China claims OFDI in 49, with 19 African countries taking in $100 million or more in Chinese investment. Only the UK can boast similarly widespread involvement on the continent. It, however, holds 42 percent of its stock in a single country - South Africa; Egypt accounts for a further 10 percent. France is only invested in 19 African countries, half of its OFDI stock being in North Africa. The third of the top three, the United States, is without an OFDI presence in 14 African countries. 

Of the developing countries, China is the second-largest investor in Africa, behind a local - South Africa - which held $10.8 billion worth of assets in its neighbors. The 2006 to 2008 investment flows recorded by the United Nations' World Investment Report indicate that Chinese investment in Africa is well ahead of other developing economies such as Turkey, India and Brazil. Also, it didn't take long after the onset of China's "go abroad" policy for it to surpass the African investment positions of other East Asian countries: South Korea was eclipsed in 2004 and Japan in 2005.