Thursday, July 1, 2021

Economic Impact of China's Infrastructure Financing in Africa

 The South African Institute of International Affairs published on 21 June 2021 a study titled "Estimating the Economic Impact of Chinese BRI Investment in Africa" by Adedeji Aderiran, Amara Ekeruche, Chukwuka Onyekwena, and Thelma Obiakor.  

China's Belt and Road Initiative (BRI) has transformed developing countries' infrastructure financing options.  The BRI offers significant opportunities for African countries to address their substantial infrastructure deficit, but it also presents risks to the environment and debt sustainability.  The impact of BRI projects will not be evenly shared among recipient countries in Africa.  Countries that are resource-rich and strong commodity exporters will benefit more than smaller economies.