Paper short abstract:

This paper argues that the rise of global land governance initiatives is influencing private firm behaviour in ways that dilute the contrast between Chinese state capital and global private capital and shape future perspectives on foreign direct investment in land-based investment in Africa.

Paper long abstract:

The literature on Chinese investment in Africa differentiates between Chinese state capital and global private capital. Based on theories of varieties of capital, this literature sees the peculiarity of Chinese state capital in its pursuance of strategic, politically motivated, long-term interests in Africa, in contrast to short-cycled and profit-orientated forms of ‘Western’ private capital. This paper puts this contrast into question in light of the sharp rise of public and private global governance norms and (certification) instruments for responsible investments and the emphasis on ‘land tenure security’ in international agendas, which exerts substantial pressure on private investors. We argue that these global governance initiatives are shaping new trends in foreign direct investment in Africa, and have, in many instances, worked to influence firm-behaviour in ways that dilute the sharp contrast between Chinese state capital and global private capital. This article contributes to the literature by empirically exploring the similarities and differences between Chinese state-owned enterprises (SOE) and global private firms (MNE) in their investment strategies in African agriculture. Based on 45 in-depth case studies of large-scale investments across four African countries – Uganda, Sierra Leone, Tanzania, Zambia –collected over the course of three years, the authors systematically explore the factors underpinning the logic of accumulation in Chinese state and private investments. The findings show that global private capital – much like Chinese state capital – can act in ways that go over and beyond profit maximisation or self-interest and may make decisions based on political, reputational, and more long-term considerations.