Chinese Investment and African Urbanisation: A Comparative Study of Democratic and Non-Democratic ECOWAS States

Abstract

This paper examines the relationship between Chinese investment and urbanisation patterns in West African states, comparing democratic and non-democratic states within the Economic Community of West African States (ECOWAS). As China has expanded its economic engagement and investment in Africa, an urban transition is underway as migration from rural to urban areas accelerates. Some argue that Chinese investment and infrastructure construction drive urban growth in the region. This paper analyses data on Chinese investment, urban infrastructure projects, and urbanisation rates across 15 ECOWAS states. It finds that while Chinese investment and construction contracts are correlated with urbanisation, there is significant variation between democratic and non-democratic states. Urbanisation rates are higher in non-democratic states with higher Chinese investment. In contrast, in democratic states, urbanisation rates are decoupled from Chinese investment and instead driven by industrialisation and service sector growth. The paper concludes with a discussion of how regime type mediates the influence of foreign investment on development patterns in Africa.