The Benefits and Burden of Chinese Foreign Direct Investment in East Africa

China’s trade and economic relationship with East Africa countries brought in much needed aid and Foreign Direct Investment (FDI) in infrastructure projects which would otherwise be too costly for these developing countries, and contributed to construction and development boom. It has made possible for some countries in the sub-region to grow their internal consumer market, generate some new opportunities for jobs and economic growth.

Somalia could benefit from China’s FDI in infrastructure projects such as the rehabilitation and expansion of airports, ports and roads but should negotiate formal, transparent, mutually beneficial trade and economic cooperation agreement with China.