Study Of Risk Assessment Of Chinese Private Enterprises Investing In Africa And Countermeasures

Since the beginning of the 21st Century, after the implementation by China of the "going out" Strategy, many Chinese private enterprises came to invest in Africa. Unfortunately, these enterprises failure rate and loss increase continuously. After the economic crisis that happened in Europe and America in 2008, China implemented the "one belt, one road" strategy, a new strategy to strengthen its economic cooperation with Africa. This means that more Chinese private enterprises will come and invest massively in Africa, increasing at the same time the risk probability. As a foreign student coming from Congo Brazzaville in Africa, doing research on this thesis topic has a great significance.In this thesis, the risk management and investment risk evaluation theory and the foreign direct investment theory of risk early warning system were used not only to provide a theory basis for analyzing and assessing the risks faced by Chinese private enterprises while investing in Africa, but also for the study of investment risk prevention measures and risk management measures. Currently, there are more than 1500 Chinese private enterprises investing in Africa in telecommunication, trade, construction, manufacturing, medical, mining, food and other industries, and the risks that they mainly face are the political risk, the economic risk, the legal risk, the cultural risk and the enterprise internal risk. On the basis of the analysis of the current situation of Chinese private enterprises investing in Africa, the Delphi method and the Analytic hierarchy process (AHP) method were both used in order to build the risk evaluation index system and the evaluation model of Chinese private enterprises that invest in Africa, according to the model research, the political risk is the most significant risk and cultural risk is the smallest risk that affect Chinese private enterprises investment in Africa. Chinese private enterprises when investing in Africa should pay more attention to the host country political stability, policy continuity, currency stability, economic stability, legal justice, local people’s attitude towards foreign investment, enterprise security ability and enterprise internal financial management, these are important indicators.Because the Chinese government, the African countries governments and the Chinese private enterprises are those who cause these risks, in order to reduce the investment risk in Africa, countermeasures and suggestions have been raised from theChinese government level, the African countries governments level and the Chinese private enterprises level. The Chinese government should improve its overseas investment insurance system, overseas investment service system, overseas investment legal framework system and the financial instruments to get into African market. African countries governments should adjust the collect taxes policies, increase the construction of their infrastructures, build an international investment perfect legal system and an investment information platform and reform the education system. Chinese private enterprises should use international insurance companies to buy investment insurance, choose low risk investment, make a new system of management, set up investment risk early warning mechanism and have an exit.