Report

Chinese investments and Africa’s small-scale producers: disruptions and opportunities

Chinese investments and Africa’s small-scale producers: disruptions and opportunities

Xiaoxue Weng, Lila Buckley, Emma Blackmore, Bill Vorley, George Schoneveld, Paolo O. Cerutti, Davison Gumbo, Kaala B. Moombe, Stephen Kabwe, Jaqueline Muzenda, Kingstone Mujeyi, Maisory Chacha, Maria Njau, Jesper Jønsson 

IIED, June 2018

The report aims to understand Chinese trade and investments in Africa’s rural economy in the agriculture, forestry and mining sectors. Based on data collected from over 700 surveys, 130 interviews and 100 focus groups. We find that Chinese and other newcomer investors employ a variety of business strategies that contrast with those employed by established players. The impacts on rural producers are generally positive as they gain cash incomes to purchase food, education and assets, and are able to integrate into the global commodity trade with better financial returns. However, positive socio-economic gains were accompanied by high environmental risks.