Thursday, July 30, 2020

China's Infrastructure-heavy Model for African Growth is Failing

The Diplomat Risk Intelligence published on 30 July 2020 an analysis titled "China's Infrastructure-Heavy Model for African Growth Is Failing" by Thierry Pairault, emeritus research director at France's National Centre of Scientific Research. 

 Drawing primarily on the example of the Chinese-financed and built Addis Ababa-Djibouti railway, the author argued that not all expensive Chinese infrastructure projects in Africa are contributing effectively to GDP growth.  What worked in China, does not necessarily work in Africa.  In addition, the Chinese-financed projects are constructed by Chinese companies and are largely sourced to Chinese goods and services.  So long as China is repaid, it is a win-win arrangement for China.  But if the project does not live up to expectations, it could be a loss for Africa. 

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