In addition to being Africa’s biggest trading partner, China is building the future of the continent’s urban landscapes almost single-handedly. Between 2007 and 2020, China’s two main overseas development banks invested USD23 billion in infrastructure projects on the continent which is USD8 billion more than what the other top eight lenders combined, including the World Bank, African Development Bank, and US and European development banks, contributed.
In some cases, Chinese infrastructure lending has been a risk for African countries, with projects blamed for being sloppily executed, prioritizing the interests of politicians and exporters over local communities, not employing local workers, and piling up unsustainable debt burdens. But on the whole, as per the Center for Global Development’s (CGD) report, Chinese infrastructure investment has been a net benefit to African economies.
The report also finds that between all public lenders, renewable energy projects have attracted more investment than other sector at USD23.5 billion. Transport and fossil fuel energy were the second and third most funded sectors with USD19.3 and 13.5 billion invested, while the telecoms sector took in USD4.6 billion.
Source: : Quartz Africa, Center for Global Development (CGD)
|Rank||Institution||Amount in Billions (USD)|
|1||China Export-Import Bank||20.1|
|2||African Development Bank||4.5|
|3||China Development Bank||2.9|
|4||International Finance Corporation||2.4|
|5||US Overseas Private Investment Corporation||1.9|
|6||Japan Bank for International Cooperation||1.7|
|7||KfW (German development bank)||1.5|
|8||European Investment Bank||1.2|
|9||FMO (Dutch development bank)||1.1|
EBR 10th Year • Apr 2022 • No. 106