Investigating the Impacts of Chinese Investments on the Global Competitiveness of Sub-Saharan Countries

Abstract

The main objective of this study is to shed light on the effects of Chinese investments on the global competitiveness of Sub-Saharan Africa, specifically Chad, Ethiopia, and Ghana. The study employs a qualitative technique based on depth semi-structured interviews. In the in-depth interviews with field professionals and experts, four questions were asked to one participant from each country. The depth interviews show that Ghana and Ethiopia have the most competitive potential respectively. On the other hand, Chad has no chance of competing due to limited resources. While Chad is characterized by poor governance and limited economic freedom, Ghana and Ethiopia have relatively a large capacity to attract foreign investment. China, as a strong competitor, uses various strategies to beat local rivals in Chad, Ethiopia, and Ghana. In this regard, it offers a wide range of products of average quality at affordable prices to customers in Chad and Ethiopia, while benefiting from large-scale production, economies of scale, and tax breaks in Ghana. With this, local investors are unable to compete with China, which negatively impact the local markets to flourish, especially in the long run.