China’s Investment in Africa’s Banking Sector

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  1 Introduction
  
  The global financial crisis, whose effects have been most severe on the world's largest banks, has created a vacuum in banking sector in Africa by stalling investment from the traditional investor. The world's largest banks, brought to their knees by the crisis, and having had to be bailed out, are in no position to continue investing in the banking sector in Africa. China, less severely affected by the crisis, with a burgeoning economy, and with banks that are awash with cash, is, in contrast, able to invest in the banking sector in Africa. Meyer (2008) pointed out that China can take advantage of the void created by western banks in Africa as a consequence of the global financial cri- sis and, possibly, create a new banking era for Africa.
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