During the 2010s, China became one of the leading connectivity players in Africa – if not the most important one. This policy brief focuses on a key aspect of China’s approach towards African continent – the provision of loans linked to construction of physical infrastructure. We argue that the importance of these projects may have come close to rivalling the importance of trade in the China-Africa relationship – but its future role is questionable due to unsustainable debts.
The start of the upsurge of Chinese loans and construction projects in Africa predated the Belt and Road Initiative (BRI), though the BRI further increased the money flow, leading to a peak in new Chinese loans between 2013-2018. However, the amount of the loans began to ebb before the end of the decade. Subsequently, the COVID pandemic and other factors led to a significant decrease of new projects.
While BRI is by no means dead, its visibility is now reduced, as new initiatives are introduced. China’s connectivity presence in Africa now emphasises “small and beautiful” projects, often with a focus on green and digital infrastructure, involving a variety of actors, financiers, and models such as public-private partnerships (PPPs).
Recommendations for the EU:
- Increase awareness of China’s evolving roles in African connectivity.
- Acknowledge differences between the roles of the EU and China, especially when it comes to China’s focus on bilateral loans and physical infrastructure.
- Develop viable connectivity programs in partnership with relevant African actors.
- Engage China in dialogue to increase understanding of each other’s approaches and potentially collaborate where possible.
Stay tuned with us by reading more: ReConnect China Policy Brief 26-African infrastructure