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Chinese Infrastructure in Africa: Far-Eastern giant is building a continent

Chinese Infrastructure in Africa: Far-Eastern giant is building a continent

Summary

Over the past couple of decades China has become a leading story in the economic development of Africa. Through loans, grants and direct investment, Beijing has established a huge presence in countries which traditionally fall outside of major western interests. Yet for all the touted economic gains, problems have emerged; debt levels in some African states are alarmingly high.

However, some countries have done well out of China, playing a clever game of international diplomacy. China has benefited from a relative lack of attention given to Africa by western powers, but that is beginning to change, albeit slowly compared to the recent expansion of Chinese interests.

Key Highlights

- China promised $175bn between 2014 and 2024, eclipsing every monetary promise to have been issued before. Cities such as the capital of Ethiopia, Addis Ababa, are replete with new roads and skyscrapers built by China. Many other African cities share similar stories of transformation.
- The result of playing the international diplomatic game as President of Kenya Uhuru Kenyatta has done is not only are foreign nations competing for business, thus improving terms, but also Kenya is highly unlikely to become dependent upon China in a similar fashion to Djibouti.
- Arguably the leading reason behind the ease with which China has maneuvered into becoming a major foreign power in Africa is the relatively low level of attention European and North American countries have paid to many countries in the world's poorest continent.

Scope

- Examines how China is catching up to Europe in Africa
- Looks at the positive impact Chines money has had on the continent
- Assesses what some of the risks to small African states of courting China
- Looks at the extent of Chinese investment into Africa

Reasons to buy

- What are the risks of African countries taking on Chinese loans?
- Are some African states overexposed to China?
- What is the extent of Chinese involvement with Africa?
- What is the western response to Chinese activity in Africa?
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Chinese Infrastructure in Africa: Far-Eastern giant is building a continent
Published By :MarketLine
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