Research On Opportunities And Risks Of Chinese Enterprises’ Investment In African Agriculture

Since the 1990 s,Chinese companies began investing in agriculture in Africa.After 2009,China’s aid to non-agriculture is dominated by technology and talent support and cooperative development projects.In particular,with the introduction of Chairman Xi’s “Belt and Road” initiative and the Beijing Summit of the China-Africa Cooperation Forum on September 3,2018,President Xi’s “Eight Actions” and the“Top Ten Cooperation Plan” proposed by the Johannesburg Summit in 2015,Africa has become one of the main areas for Chinese agriculture to “go global”.Africa’s arable land accounts for about 10% of the world’s total,but 80% of the cultivated area has not yet been utilized,and agricultural development potential is huge.While acquiring African agricultural resources and markets,Chinese companies must also bear the risks of political and legal risks,economic risks,social risks and insufficient technology supply.This thesis uses literature research,interviews and case analysis to explain the basic concepts and build a theoretical framework.Firstly,it analyzes the status quo and problems of Chinese enterprises investing in African agriculture,and secondly reveals the opportunities and risks of Chinese enterprises investing in African agriculture.Finally,taking SA Grain,an agricultural enterprise invested by China in South Africa,as an example,using SWOT analysis model to study its Reasons for success,possible risks,and countermeasures.In order to help more Chinese companies enter Africa for agricultural investment,the relevant countermeasures and suggestions are given at the end of this paper.First of all,the Chinese government should actively support domestic enterprises that want to invest in African agriculture,help them establish overseas financing channels,establish and improve the legal and service guarantee system for private enterprises in Africa,and provide convenient conditions for Chinese companies to open companies in Africa.Secondly,the agricultural industry associations should give certain information services to enterprises that are not investing in agriculture,and help enterprises in the industry to enter Africa in the form of agricultural industrial chain.Finally,Chinese companies investing in African agriculture should make long-term strategic planning,focusing on technology research and development,product innovation and brand upgrading,and enhance the core competitiveness of enterprises.At the same time,private enterprises should actively fulfill their social responsibilitiesat the place of investment,establish a good international image,and promote the sustainable and healthy development of enterprises.