Who Really Benefits from China's Infrastructure Push in Africa?

Take a ride at Nairobi's gleaming new airport or join the standard gauge train to Mombasa. Drive over the Maputo Katembe Bridge in Mozambique or look at the African Union HQ in Addis Ababa. Next, notice that these don't just show off African progress alone. They form one part of a larger international situation. Over the last two decades, China has played the largest role in changing the physical landscape of Africa.

The China Africa Research Initiative (CARI) at Johns Hopkins University reports that China has provided nearly $153 billion in loans to African nations between 2000 and 2019, making it the largest bilateral lender on the continent. Building their company's infrastructure is often left to state-owned firms in China.

- Over 10,000 kilometers of railways

- 100,000 kilometers of roads

- Dozens of airports, ports, and power plants

- Large-scale energy and technology infrastructure

Lagos is being changed by Chinese companies who are building a $1.5 billion Lekki Deep Sea Port, delivering a rail system and constructing factories for EVs and steel. We cannot overlook these changes: more people are moving to cities, sales are rising fast, and transport across the country has improved greatly.

Even with new buildings and bridges, there is still a question: Who will benefit from the massive investment in infrastructure? What does it mean for Africa's independence, financial stability and capability to act in the future?

 

The Rise of a New Builder

Over the past twenty years, China has changed from a distant superpower to Africa's main builder of infrastructure. The move to Asian primacy has transformed the economy and political scene across a large part of the world in this century.

It is easy to see the story in the numbers. Between 2000 and the present, China has built over 10,000 kilometers of railways, 100,000 kilometers of roads, several airports, seaports and many government offices throughout Africa. China has granted Africa the most loans of any country, amounting to more than $150 billion during that time.

But exactly how did such an enormous change take place? Why has China come to be known as Africa's leading builder? In addition, what will the long-term results be for the continent's countries?

 

A Match out of Necessity

Economic growth in China in the early 2000s was greater than anything experienced before. Its industry was expanding quickly, exports were going up, and it was industrializing rapidly. Because of the economic miracle, countries all over the world became very interested in obtaining Africa's natural resources: oil, copper, timber and rare earth minerals.

African countries went through their struggles. For decades, programs put in place by Western financial institutions had made it difficult for many countries to keep their infrastructure and access needed capital. In the past, Western lenders had stopped lending as much and were setting strict rules for how loan money should be used. African governments knew infrastructure needed to be built, but they did not have the money to do it.

China was attractive as a different way to do business. Unlike how it works in the West, China simply offered infrastructure improvements in exchange for resources and without tying political reforms to the deal. Many African leaders liked the idea because it supported development they could see and kept outsiders from influencing their internal matters.

 

The Scale of China's African Footprint

The number and size of China's infrastructure initiatives in Africa are incredible. Many parts of the continent have undergone giant changes due to Chinese-built development.

- The 3.2-billion-dollar Mombasa-Nairobi Standard Gauge Railway in Kenya cut the travel time between the cities from 12 hours down to 4.5 hours.

- The 4 billion dollar Addis Ababa-Djibouti Railway provides a link between Ethiopia and the sea

- The opening of the $200 million African Union building in Ethiopia is proof of China's support for Africa.

- China's influence is seen in the Presidential Palace in Zimbabwe, which costs $100 million.

- The successful $1.5 billion Kariba North and South Bank Power project in both Zambia and Zimbabwe

 

China's Growing Presence in Nigeria

As Africa's most populous nation, Nigeria is getting major Chinese attention for its infrastructure development. There have been many important projects produced by the partnership between these two organizations.

 

Infrastructure Development

The Lekki Deep Sea Port in Lagos is proof that China supports Nigeria's economy. According to CHEC, the port is intended to relieve ongoing congestion at older ports and give thousands of Nigerians employment opportunities.

Chinese investors have put a lot of money into transportation systems around the world. The Lagos Blue Railway Metro Line, built by the China Civil Engineering Construction Corporation (CCECC), is a sign of Nigeria's efforts to improve how people move in its cities. Among their projects, Chinese companies are constructing a highway linking the north and south of Nigeria. They are now 70% done, despite issues brought on by the COVID-19 pandemic.

 

Energy and Manufacturing

Besides traditional projects, Chinese businesses are getting involved in Nigeria's energy and manufacturing industries. Nigeria is set to launch electric vehicle production into its market after Shanghai Launch Automotive Technical Co Ltd signed a $2 billion MoU to produce electric autos in collaboration with the Nigerian government.

The cooperation of Chart & Capstone Integrated Ltd and Sinomach in the steel sector is aimed at changing Nigeria's economy through larger steel production. The project serves to connect Nigeria to the Belt and Road Initiative and, by extension, to the world's supply chains.

 

Technology and Defense

Chinese companies are involved in developing new technologies and the defense area in Nigeria. China Great Wall Industry Corporation has completed a deal to supply the key equipment and technology for UAV assembly lines in Nigeria.

Companies such as Huawei Technologies and Zhejiang Dahua Technology have spent a lot on Nigeria's digital infrastructure, aiding the country's growth and rise in technology.

 

The Double-Edged Sword

Many believe that China's actions have surely encouraged development in Africa, but they are sometimes criticized, too. Critics talk about issues that concern the relationship between China and Africa.

 

Debt Sustainability Concerns

As Africa's main bilateral creditor, China finds some countries in trouble with their debts. According to the China Africa Research Initiative at Johns Hopkins University, Angola, Ethiopia, Kenya, and Zambia now carry Chinese debt that is more than 15% of their national economies.

Of greater concern are cases where loan documents include so-called collateral clauses, which might expose national properties if a country defaults. Although China claims not to take part in "debt trap diplomacy," the fact that many loan terms are secret leads many to suspect their reality.

 

Labor and Environmental Practices

There has been criticism over Chinese infrastructure projects for mostly hiring Chinese workers and missing out on employing locals. Occasionally, environmental rules on projects fail to meet international standards, making people worried about the effects on the environment in the future.

 

Quality and Sustainability Questions

Even though construction in China is very rapid, security and durability are sometimes raised as questions. Some governments in Africa claim that Chinese infrastructure is not standing up to wear and tear and needs urgent maintenance and repairs.

 

Finding Balance: Africa's Path Forward

China's building of infrastructure in Africa does not fix every problem and nor does it cause every danger. As a result, African countries now have new opportunities and constraints they have to navigate smartly.

African countries should accept Chinese investment, but make sure they always act with awareness and far-sightedness. The key to success is using Chinese investment and knowledge, while still deciding how to develop and use resources yourself.

A few principles might lead to a fairer and healthier relationship:

1. Having loan agreements and project contracts checked and confirmed by others

2. The use of local talent and the need to meet local employment expectations increase national ability

3. Safeguards put in place to protect the environment and society for future growth

4. Working with a range of countries to keep China interested in the deal

5. Making choices about projects that truly provide economic benefits

 

Building African Agency

The real question for Africa is not about engaging with China, but about finding the best ways to do it. To release its economic growth, the continent requires new infrastructure such as roads, railways, ports and systems for power. China provides an opportunity to accelerate the building of this infrastructure.

The key goal for these connections is to promote the agency of Africans. This requires better preparation by institutions to judge project proposals, negotiate positive terms, ensure standards are met and make certain investments remain useful for longer.

Says one African economist: "Africa doesn't need to reject help from China. All Africa needs is to accept who it is.

Africa will guide its future relationship with China by standing up for its own needs. Every innovation and infrastructure project we see now will determine how Africa develops for generations. The goal for African leaders is for these new roads, rail lines and ports to empower future generations instead of putting them in someone else's hands or control.

Africa is not only creating new infrastructure; it is forming its future. What must be considered is whether the company is creating a future it can make its own.