The Research On Chinese Enterprises' Investment In African Power Industry

There is a long history of economic cooperation between China and Africa.Investment from china to Africa has become increasingly in recent years,especially in power investment.China's direct investment in Africa power industry is increasing,more and more enterprises begin to "going out" to Africa.This is mainly due to the support of national policy.In March28 th 2015,the national Development and Reform Commission,the Ministry of Foreign Affairs,the Ministry of Commerce jointly issued“The Vision and Action of Promoting the Construction of The Silk Road and Economic Belt and The Maritime Silk Road in Twenty-first Century ”.In December 4 th 2015,China President Xi Jinping put forward a massive plan to carry out 10 major cooperation projects when he was delivering a speech at the opening ceremony of the Johannesburg summit.All of these had brought favorable opportunities for Chinese enterprises to invest in Africa's power industry.In addition,African electricity resources are scarce.According to data released by International Energy Agency,about 600 million of Africa's population failed to get access to electricity,accounting for about half of the total population in 2016,more than 30 African countries often suffered in power failure or limited power supply.Africa's abundant natural resources of power generation,such as wind,water,solar energy,etc have not been fully utilized.China enterprises direct investment in African power industry not only can alleviate the current situation of electricity power shortage,fully utilize abundant natural resources,promote economic development of Africa,but also can increase the cooperation in power between China and Africa,and improve competitiveness of Chinese power enterprise,achieving a "win-win" situation.This paper first analyzed the favorable conditions of China's direct investment in African power industry,such as broad investment market,great potential of natural resources development,strong power of China's enterprises and support from Chinese government.Secondly,the paper analyzed the present situation of direct investment of China to African power,mainly from the aspect of scale of investment,the installed power energy structure,the technology,enterprise type,investment mode,financing source and financing mode.Then described the significance of China's direct investment in Africa.Next analysis problems encountered by Chinese enterprises in the process of direct investment in African power are analyzed in detail,mainly include:financing difficulties,bad investment environment,risks leaded by characteristics of power,the destruction of living environment around the residents,lack of international management experience and talents,unreasonable location choice of investment.Finally,this paper puts forward some suggestions on how to expand China's direct investment in Africa power in view of these problems,providing some references for the government and enterprises.