The aim of this thesis is to identify and analyse the main motivations and obstacles of private Chinese outward foreign direct investment in the Ethiopian manufacturing sector.
China's outward foreign direct investment to African countries have grown with fast pace within the last decades. Chinese engagement in Africa is a multifaceted and complex issue bolstering both opportunities and challenges for the countries involved. The increase in trade and investment has caused much debate about the motives behind Chinese companies presence in African countries (Dollar 2016: 11).
In recent years Ethiopia have become a leading investment destination for Chinese companies and China is now an important trading partner for Ethiopia
In order to comprehend the motivations behind Chinese foreign direct investment in Ethiopia the theoretical framework of this thesis will be based on Dunnings taxonomy of FDI motives which will be the framework for analysing Chinese FDI motives in Ethiopia. The investigation is based on data gathered through qualitative and quantitative methods. The primary data is collected through a survey with employees from Udenrigsministeriet (UM), Investeringsfonden for Udviklingslande (IFU), China-Africa project and the Danish Institute for Human Rights. The secondary data was collected through academic journals, books, newspaper articles and statistics.
The findings of the study shows that the Chinese investment in Ethiopia is prompted by market and resource seeking motives. Chinese companies enter Ethiopia to acquire low-cost production input and to gain access to local and foreign markets. The primary obstacle for the Chinese investors are Ethiopia's weak supply chains, custom clearance efficiency, lack of vital infrastructure and access to finance.
|Uddannelser||Internationale Udviklingsstudier, (Bachelor/kandidatuddannelse) Kandidat|
|Udgivelsesdato||29 jan. 2019|