The Economic Engagement Footprint of Rising Powers in Sub-Saharan Africa: An Analysis of Trade, Foreign Direct Investment and Aid Flows

Abstract

Rising powers such as Brazil, China, India, South Africa, the Gulf states or Turkey have entered the development arena through their expanding relationships with low-income countries (LICs). One region where this engagement has been increasing more significantly is sub-Saharan Africa (SSA). Estimates suggest that over the last decade both trade and foreign direct investment (FDI) from emerging economies to Africa ballooned. However, some views suggest that the importance of engagement from these countries is still small compared to traditional OECD donors, and highlight that established relationships can sometimes be more likely to satisfy the commercial and economic interests of these new donors. The objective of this report is to understand and measure the engagement of rising powers in SSA.1 Specifically, the report attempts to clarify the importance and nature of their engagement and the distinctiveness of their economic relationships with SSA, among the rising powers themselves and also in relation to traditional OECD donors, and to start analysing their likely development footprint arising from their economic engagement.