Chinese mining sector investment and energy independence in Africa: A panel data analysis of 20 Countries from 2013 to 2022

Abstract

The study explores relationships between renewable energy variables across African nations, focusing on South Africa (RSA) and the Democratic Republic of Congo (DRC) using panel data from 2013 to 2022. Key variables include Chinese mining sector FDI (in USD), renewable energy capacity (in MW), technological advancements, policy frameworks, natural resource management, technological adoption, and risk perception. Employing descriptive analysis, Pearson correlation, and linear regression, the study reveals notable findings. Descriptive statistics highlight significant diversity in renewable energy capacity, policy support, and mining sector FDI levels across African countries, reflecting varying development stages and investment climates. The DRC exhibits slower FDI growth compared to South Africa. Correlation analysis indicates that Chinese FDI strongly correlates with technological advancements, favorable policy frameworks, and renewable energy capacity, while high-risk perceptions discourage investment and capacity development. Regression results identify technological advancements as the most significant predictor of FDI and sustainable growth, emphasizing its critical role in attracting investment. Although policy frameworks and risk perception show potential, further exploration with larger datasets is required to uncover their moderating or indirect effects. The study underscores the interdependence between technological development, investment flows, and renewable energy capacity. It calls on African nations to prioritize technological advancements, foster partnerships with Chinese firms for technology transfer, and implement robust policy frameworks. Policymakers should focus on political stability, economic reforms, tax incentives, streamlined approvals, co-financing mechanisms, and addressing structural challenges to effectively attract FDI and drive sustainable growth.

Keywords: {'name': 'Chinese Foreign Direct Investment, Renewable Energy Capacity, Africa, DRC, South Africa'}

Authors & affiliations

Makatleho Georginah Domela
Affiliation not supplied

Ze Tian
Affiliation not supplied

Brian Mereta
Affiliation not supplied

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