Showing posts with label financing. Show all posts
Showing posts with label financing. Show all posts

Sunday, July 5, 2026

China, the US and Africa Green Minerals Strategy

 China-Africa Security Radar published on 5 July 2026 a commentary titled "China, the United States, and Africa's Green Minerals Vision" by Paa Kwesi Wolseley Prah.

In 2025, the African Union adopted a continental policy framework called Africa Green Minerals Strategy (AGMS), which aims to turn Africa's critical and green minerals endowment into sustainable, value-adding industrialization that supports a just energy transition and regional supply chain integration.  

China has the processing capacity, investment scale, implementation speed, and institutional flexibility to advance African industrialization--but its commercial incentives run directly against allowing Africa to independently climb the value chain.

The US offers somewhat more transparent financing structures, stronger governance standards, and procedural models that on paper seem to better protect African states from debt traps--but it lacks the industrial ecosystem and the genuine political will to support African manufacturing rather than African extraction for American consumption.   

Monday, June 15, 2026

The Promise and Disappointment of China's Zero Tariff Policy for Africa

 The Daily Maverick published on 10 June 2026 an article titled "China's Zero-Tariff 'Gift' to Africa Could Be a Trojan Horse in Disguise" by William Gumede, University of Witwatersrand.  

China's new zero tariffs for African countries offer an opportunity to industrialize but it will only happen if they leverage China to build manufacturing capacity in Africa, transfer technology and skills, add value to raw materials, and secure Chinese financing for industry relevant infrastructure.  

Friday, June 12, 2026

China's Zero Tariff Policy Does Not Guarantee Access for African Exports

 The UK's Institute of Development Studies published on 10 June 2026 a study titled "From Market Access to Strategic Openness: The New China-Africa Business Relationship" by Jing Gu.

China's new zero tariff policy for Africa opens doors for increased exports to China but does not automatically increase them.  The real constraints are upstream standards compliance, rules of origin, certification, logistics, cold chains, customs systems, trade finance, and company-level capacity.  

Wednesday, May 27, 2026

How African Countries Can Get Better Value from Chinese-Supported Power Projects

 Energy for Growth Hub published on 18 May 2026 an article titled "Four Ways African Countries Can Secure Better Outcomes from Chinese-supported Power Projects" by Naa Adjekai Adjei.

Ghana's experience with Chinese-supported power projects demonstrates that it is possible to achieve better results with cost benchmarking, competitive procurement, stronger finance negotiation, and project oversight expertise.

Thursday, April 30, 2026

China's Zero Tariff Policy for Africa: An Opportunity Not a Guarantee

 B & FT Online posted on 29 April 2026 an article titled "Africa-China 2.0 with Paul Frimpong: Zero Tariff, Zero Excuses: Africa's Moment with China Has Arrived."

China's much heralded zero tariff policy for 20 more African countries, raising the total to 53 out of 54 countries on the continent, is an opportunity but will not guarantee significantly more African exports to China.  African countries must develop new trade strategies to take advantage of the opportunity and meet remaining Chinese quality and safety standards.   

Friday, April 10, 2026

China Gifts Kenya a Foreign Ministry

 The Brief posted on 9 April 2026 an article titled "China to Build Kenya's Foreign Affairs Headquarters in Landmark Aid Deal."

Kenya has signed a grant agreement with the China International Development Cooperation Agency paving the way for Beijing to construct a new headquarters for the Ministry of Foreign and Diaspora Affairs.  

While the project underscores deepening bilateral ties, it raises sovereignty concerns.  Critics warn that allowing a foreign power to finance and construct the headquarters of a ministry responsible for diplomacy and the handling of classified communications could pose security and sovereignty risks.

Thursday, April 2, 2026

Chinese Infrastructure Projects in Africa Leave No Role for Local Urban Planners

 The Conversation published on 30 March 2026 a commentary titled "China Is Helping Build Africa's Cities, but Its Approach Sidelines Local Urban Planners and Residents" by Ding Fei, Cornell University.

Chinese-financed infrastructure projects are transforming skylines and daily life across Africa.  While China delivers an impressive volume of infrastructure, it risks reinforcing Africa's national government dominance in decision-making on urban infrastructure development.  African local governments and residents are excluded from the project planning and negotiating process.  

Wednesday, April 1, 2026

The Communist Party of China Reaches Out to Africa

 E-International Relations posted on 1 April 2026 my short paper titled "The Communist Party of China Reaches Out to Africa."

This is a post-COVID-19 update of efforts by the International Department of the Communist Party of China (ID-CPC) to strengthen ties with political parties in Africa.  COVID-19 significantly interrupted the ID-CPC's interaction with African political parties. The ID-CPC has now returned to a high degree of engagement with them.     

Friday, March 20, 2026

Impact of Chinese State-Owned Enterprises in Africa

 The Africa Center for Strategic Studies published on 17 March 2026 an analysis titled "Chinese State-Owned Enterprises and Market Capture in Africa" by Paul Nantulya.

China has the largest state-owned enterprise (SOE) sector in the world, accounting for about 20 percent of China's GDP.  African economic sectors such as mining, railways, and power generation can become dominated by large Chinese SOEs.  They can then out compete African companies and other investors, create supply chain dependence on Chinese firms, and reduce the bargaining power of African governments.  

Thursday, March 19, 2026

Different Chinese and American Strategies to Access DRC Minerals

 Discovery Alert posted on 18 March 2026 an article titled "US Push into DRC Copper and Cobalt Reshapes Global Mineral Security" by Muflih Hidayat.

US Project Vault is a $30 billion critical minerals investment framework.  Rather than purchasing minerals on the international market, the US strategy involves deep capital investment in extraction, processing, and transportation infrastructure.

This contrasts with China's approach.  In the Democratic Republic of Congo, for example, Chinese entities control 15 major copper/cobalt operations representing billions of dollars in infrastructure investment accumulated over two decades. This strategy has created supply chains that flow predominantly to China, limiting Western access to critical minerals. 

The comparison between Chinese billions already invested and American strategic financing reveals the challenge facing Western countries.  China's established infrastructure relationships and operational experience provide significant advantages that cannot be overcome through financial resources alone.  

Tuesday, February 3, 2026

Kenya's Ruling Party to Model Training After and Seeks Funding from Communist Party of China

 Kenyans.co.ke posted on 31 January 2026 an article titled "Ruto to Launch Political School for UDA Using Communist Party of China Framework" by Maxwell Amunga.

A senior delegation from Kenya's ruling United Democratic Alliance (UDA) is in China studying the Communist Party of China's (CPC) organization, cadre training, and grassroots mobilization.  The delegation aims to incorporate best practices in political discipline, governance structures, and leadership development.

The Star published on 31 January 2026 an article titled "Top UDA Officials in China Ahead of Launch of UDA Party School" by Felix Kipkemoi.  

This article adds that the current visit to the Zhejiang Provincial Party School follows talks in 2024 between UDA and CPC officials on party-to-party cooperation.  The article also notes that the UDA is seeking up to $7.75 million from the CPC to serve as its headquarters, which will incorporate the new party leadership school.  The UDA is banking on the solid relations Kenya has with China to secure the funding.  

Friday, October 3, 2025

China's Role in Africa's Energy Development

 The China-Global South Project published in July 2025 a major report titled "Powering Africa: China's Expanding Role in the Continent's Energy Future" by Frangton Chiyemura.

From 2020 to 2024, Chinese financing delivered over 32 gigawatts of power generation capacity to 30 African countries.  At the same time, several projects face delays or dormancy due to technical, financial, or political challenges.  

Thursday, July 24, 2025

Controversy Over Funding of Grand Ethiopian Renaissance Dam

 The BBC posted on 23 July 2025 an article titled "Ethiopian Official Denies Donald Trump's Claim that US Funded River Nile Dam" by Wedaeli Chibelushi.

President Trump asserted in a meeting last week that "US money largely" funded the Grand Ethiopian Renaissance Dam.  An Ethiopian official responded that Ethiopia built the dam "without any foreign aid."  The money came from Ethiopian bonds sold to companies, pledges from Ethiopian government civil service salaries, and donations from the Ethiopian diaspora.

Comment:  I am not aware of any US government funding for the dam.  The Ethiopian diaspora in the United States made a modest but not precisely known contribution to GERD funding.  

Monday, July 14, 2025

Grand Ethiopian Renaissance Dam Completed

 Financial Afrik published on 6 July 2025 an article titled "Ethiopia Completes the Grand Renaissance Dam: $4 Billion Funded 'On Its Own'."

Prime Minister Abiy Ahmed announced on 3 August that the $4 billion Grand Ethiopian Renaissance Dam has been completed and will be inaugurated in September.  It is the largest hydropower dam in Africa and was funded by the Ethiopian government through national bonds and contributions from patriotic campaigns and deductions from civil service salaries.  

Wednesday, June 11, 2025

Algeria Scrubs Huge Chinese Port Project

Yabiladi.com posted on 9 June 2025 an article titled "Algeria Withdraws Major Port Project from China, Is the Sahara Question the Reason?" by Mohammed Jaabouk. 

Algeria has pulled out of a multi-billion project first announced in 2015 for China to finance, build, manage, and partially own the huge El Hamdania port.  It was initially launched as a rival to Morocco's Tanger-Med port.  The article suggests China's position on the controversial Western Sahara issue may have something to do with the cancellation.

Comment:  This project has been in doubt for years and likely has more to do with Algeria's ability to pay for the project and its economic viability.  

Saturday, May 10, 2025

Parliamentary Oversight of Chinese Loans to Ghana and Nigeria

 The Westminster Foundation for Democracy published in 2025 a study titled "Parliamentary Oversight and Chinese Loans in Africa: The Case of Ghana and Nigeria" by Abdul-Gafar Tobi Oshodi, Lagos State University.

The study identifies party-centered responses in parliament, executive push, and dependence on Chinese development finance as the challenges of parliamentary oversight.  It concludes that strengthening parliamentary oversight of Chinese loans will require the involvement of non-state actors.  

Friday, April 25, 2025

Kenyan President's Visit to Beijing

 The South China Morning Post published on 25 April 2025 an article titled "China to Fund Kenyan Road and Rail Schemes as It Seeks Support in Opposing Trump Tariffs" by Jevans Nyabiage.  

Kenyan President William Ruto, during his recent visit to Beijing, sought and apparently received assurances of additional Chinese funding for Kenyan infrastructure projects.  Xi Jinping used the meeting to seek support for his opposition to the Trump administration tariffs.  

Wednesday, March 12, 2025

Funding Frozen for International Exchanges, Students in Limbo

 The Washington Post published on 11 March 2025 an article titled "Funding Freeze Leaves Fulbright and Study-abroad Scholars Stranded" by Olivia George.

The State Department froze funding for long-standing international exchange and study-abroad programs, including the famous Fulbright Program.  Consequently, persons in these programs overseas are being stranded pending clarification of the funding.  More than 7,400 people from around the world hosted by programs in the United States face the same dilemma.

Thursday, February 13, 2025

The Islamic State Regroups in Somalia

 The Washington Post posted on 11 February 2025 (front page of the 12 February paper edition) an article titled "The Islamic State Has Regrouped in Somalia -- And It Has Global Ambitions" by Katharine Houreld.  

The Islamic State's Somali branch has become its new operational and financial hub with estimates of as many as 1,000 militants under its command.  In 2015, the Islamic State broke from the better-known Al-Shabaab terrorist group in Somalia and its aspirations are larger.  Islamic State militants come from a variety of countries and the Somali branch provides funding for like-minded groups throughout the region. Its base of operations is the Puntland region of Somalia.     

Saturday, February 1, 2025

Chinese Stadium Diplomacy in Ethiopia: Cost Overruns and Delays

 The Diplomat published on 31 January 2025 a commentary titled "Chinese Stadium Diplomacy in Africa, Pt 2: Adey Ababa Stadium in Ethiopia" by Istvan Tarrosy and Zoltan Voros. 

The 62,000-seat capacity stadium in Addis Ababa has faced problems since its initiation in 2016.  Chinese State Construction Engineering Corporation (CSCEC) was supposed to finish the stadium in September 2022.  Cost overruns and currency devaluation caused disagreements that led to termination of the contract with CSCEC in February 2023.  Ethiopia signed a new contract with China Communications Construction Company.  Although the project has restarted, cost questions remain, and progress is slow.