Investment by China in African Countries

Figure 1 presents the total investment by China in African countries between 2000 and 2015. The amount is the sum total of investment over the period. Our statistics homework helpers observe that the investment has fluctuated over the years, with investment reaching a peak in the year 2007, then rising and falling intermittently from 2007 till 2014.

Figure 2 presents the intention with which investment was made in the African countries, The intentions were Developmental, Commercial, Mixed, or Representative. The graph shows that the bulk of investment is made with the intention of development. This investment rises from 2000 till 2008 when it reached its peak. Since then it has been falling. Investments for all other intents also fluctuate throughout the period as can be observed from the graph. Less investment was made on developmental projects between 2000 and 2006 while from 2006 upwards the focus has been on the developmental project. More was spent on representative projects in 2012 similarly to developmental while less is spent on Mixed projects and commercials. Around 2004 and 2006 bulk of investments were mixed while investment in developmental, commercial, and representative was low.

Figure 3 presents investment by sector taking into consideration the 4 important sectors which are Education, Health, Water Supply and Sanitation and Industry, Mining, and Construction. The graph shows that investment in the health sector increases in the first three years before falling in 2004 rising again in 2005 and reaching a peak in 2007 followed by a fall and rise in 2008 and 2009 respectively. From this information, our statistics assignment helped experts argue that investment in the health sector falls in 2010 but by 2011 upward, it has been on a rising trend. Similarly, investment in Education in Africa followed the same pattern as the health sector except that the peak is in 2012 and there are three years of very high investment in education, which are 2006, 2009, and 2012. Investment in the education sector is very low in 2010 but rise afterward by 2011 and 2012 but has been falling since. Investment in Water Supply and Sanitation fell for the early period from 200 till 2005 and rise since 2006 reaching its peak in the year 2008 before a drastic fall in 2009 which is maintained in the next two years reaching an all-time low by 2010 and since 2011 investment in Water Supply and Sanitation has been roughly constant. Finally, the investment in Industry, Mining, and Construction fluctuates year in year out for the whole period with a year of rising is directly followed by a fall in the next period then by a rise till around 2008 when there is a for three successive years before reaching its peak in 2011 and then fall afterward. Moreover, from 2000 to 2005, less is being invested in education, and health, in 2006 and 2007; a bulk of investment was on water supply, sanitation, and education while health received less. After 2007 investment in water supply and sanitation decreases significantly while health starts rising and investment in health and education is very high in 2009 and 2010 both fell with investment falling on education more than health and at this period investment is more for Industry. From 2012 upward, investment in Education and Industry has been falling while more has been invested in Health.

Figure 4 presents the investment by flow, the flow is of 8 categories which are Debt forgiveness, Debt rescheduling, Export Credits, Freestanding technical assistance, Grant, Loan, Scholarships and training, and Vague TBD. The graph shows that debt rescheduling has fallen drastically over the years. Conversely, grants have risen over the year even though there is a fall in grants for some years reaching its peak in 2009 and has been rising and falling intermittently to date. Loan exhibits a similar pattern like Grants and has been by rising the first three years but a slight decrease in 2003 followed by a rise for 4 successive years eventually reaching a very high point in 2007, then it falls temporarily in 2008 before rising and reaching its peak in 2011 and has fallen since then till date. All other categories of flow have exhibited similar patterns over the years.

Figure 5 explores Chinese investment by loan type. The loan types considered are Concessional, Interest-free, and non-Concessional. One pattern is common to all these loan types and this is that investment in these loan types has fallen until the last point in the data even though the length of the period is different. For example, concessional investment fell consistently from 2011 to date, while interest-free investment fell only in 2014, and non-concessionary fell from its peak in 2007 to date with a slight increase in 2011. We observe that in the early periods from 2000 to 2004 much emphasis was on debt rescheduling while less is spent on grant loans or free technical assistance. However, since 2006 and to date bulk of investments were given as grants and loans, and export credit--, which has attracted less investment since 2009--. We observe that between 2006-2010, a lot was spent on free-standing technical assistance, much was also spent as grants and loans during this period and Vague TBD as well while debt forgiveness and debt rescheduling fell drastically around this period. Around 2005-to 2007 non-concessionary loan was very high while less interest-free and concessionary loan was given. However, from 2009 upwards, non-concessionary loans declined drastically while much has been spent on interest-free and concessional investments.