| With the increase in the scale of China’s direct investment in agriculture in Africa,deepening the agricultural cooperation between China and African countries at a higher level has become a major opportunity and strategic choice for China’s cooperation with Africa in the new development stage.General Secretary Xi Jinping once emphasized at the Beijing Summit of the Forum on China-Africa Cooperation in2018 that it is necessary to promote China-Africa agricultural modernization cooperation and build a closer China-Africa community with a shared future.2022-2024),China and Africa should give full play to the mechanism of the Forum on China-Africa Cooperation,focus on the needs of the African Union and China’s advantages,and support Chinese enterprises to carry out market-oriented agricultural investment in Africa through greenfield,equity participation,mergers and acquisitions and other forms.,to help African countries improve their agricultural independent development capabilities,and China-Africa agricultural cooperation has once again risen to a new political height.In this context,it is necessary to accelerate the direct investment of Chinese private enterprises in Africa,improve the success rate and efficiency of private enterprises’ investment,and provide new momentum for Africa’s economic development and agricultural modernization.In the past two decades,under the guidance of the framework of the Forum on China-Africa Cooperation,China’s direct investment in African agriculture has made remarkable achievements.Private enterprises have become the main force of direct investment in African agriculture,and the scale of direct investment in African agriculture has grown rapidly.However,the inappropriate and blind investment of private enterprises in Africa’s agricultural investment entry mode has led to some projects facing difficulties such as high investment risks,difficulties in progress,and even project interruption.The lack of cross-border investment experience and risk prevention mechanisms further aggravates the risks of private enterprises investing in African agriculture.The complementarity of African countries and China in the industrial structure and the rich endowment of agricultural resources have laid a good foundation for private enterprises to further expand their agricultural investment in Africa.To this end,how can Chinese private enterprises take advantage of Africa’s rich agricultural resource endowment and give full play to the development advantages of China’s agricultural industry to choose an appropriate investment entry mode in the process of direct investment in Africa’s agriculture,reduce investment risks,and promote private enterprises to "go global" ? Promoting the common development of the agricultural industries of both sides is the realistic need of Chinese private enterprises’ direct investment in African agriculture at this stage.This paper firstly summarizes the development process of Chinese private enterprises’ direct investment in African agriculture,summarizes the entry mode of private enterprises’ direct investment in African agriculture,and analyzes the characteristics and problems of private enterprises’ investment in African agriculture.Based on the current situation and problems of private enterprises’ investment in Africa’s agriculture,this paper conducts a theoretical analysis on the choice of entry mode of private enterprises’ direct investment in Africa’s agriculture.Factors are the starting point.Combined with the multinational investment advantages of private enterprises and the agricultural investment environment of African countries,a decision-making framework for private enterprises to choose African agricultural direct investment models is constructed.At the same time,the investment projects of Hunan Yuanshi Seed Industry in two African countries are selected as cases,and through theoretical analysis and case studies,the choice of entry mode of private enterprises’ direct investment in African agriculture is analyzed.The research results show that the motivations of my country’s private enterprises’ direct investment in African agriculture are mainly divided into resource-seeking,market-seeking and policy-seeking.The quality of the host country’s political system,the institutional distance from my country and the degree of development of the capital market are the determinants that affect the choice of Chinese private enterprises’ direct investment in African agriculture.At the same time,the problem of capital is the main problem faced by private enterprises in the process of direct investment in African agriculture.Private enterprises should combine their own advantages in transnational investment and the agricultural investment environment of African countries,choose the appropriate investment entry mode,improve the investment efficiency of private enterprises,give full play to the industrial spillover effect,and promote the development of local African industries.Based on this,this paper puts forward suggestions from both macro and micro levels.For the government,it is necessary to establish an administrative department for private enterprises to invest in African agriculture,to guide private enterprises to invest in Africa in an orderly manner,and to establish agricultural investment in Africa between China and Africa.Investment consultation mechanism,increase policy support for private enterprises’ investment in Africa from multiple dimensions such as finance,finance,law,etc.,improve the quality of agricultural investment projects,promote the development of African agriculture through high-quality cooperation,and achieve food security;The construction of large-scale investment risk prevention in Africa,fulfilling the local social responsibilities of African countries,improving the international management capabilities of enterprises,cultivating international management talents,and rationally formulating direct investment strategies and entry models in Africa. |
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