Private capital as important as aid to poor countries, study says (Reuters)

From the article:

Private capital inflows are, on average, as important now to the economies of the world’s low-income countries as foreign development assistance, according to a study published on Wednesday by the Center for Global Development.

In Africa, where most of those nations are located, the inflows have been bolstered by foreign direct investment (FDI) from China, which is rapidly catching up with traditional players.

“Lots of people are focused on China as a lender,” said Nancy Lee, one of the report’s authors. “But China is now one of the largest direct investors, which means a long-term commitment and a significant contribution to capital formation in Africa.”