Major Chinese Investments in Suez Canal Economic Zone

 Zawya Projects posted on 29 May 2023 an article titled "Chinese Companies Flock to Egypt's SCZONE" by Eman Hamed.

Chinese companies have announced more than $3 billion in investment projects in the coming years in the Suez Canal Economic Zone in the chemical, textile/apparel, power, pipes, and iron and steel sectors. 

Comment:  Historically, not all announcements of Chinese investment projects materialize and it will be instructive what happens in this case.

Zimbabwe-China Extractive, Energy, and Financial Service Sector Relations

 The Zimbabwe Environmental Law Association published on 12 September 2022 a "Policy Brief on Zim-China Relations."

The policy brief analyzes the positive and negative aspects of Chinese investments within the extractive sector with a focus on three key minerals (gold, diamonds, and chrome), energy, and financial services sector.

Critical Infrastructure in China's Africa Strategy

 The National Bureau of Asian Research published on 3 May 2022 a major study titled "(In) Roads and Outposts: Critical Infrastructure in China's Africa Strategy" edited by Nadege Rolland.

It examines the implications of China's growing presence in African ports, railways, industrial parks, information and telecommunication networks, and power generation.  It has chapters by Isaac Kardon on ports, Yunnan Chen on railways, Daria Impiombato on telecommunications, Erica Downs on power, and Thierry Pairault on industrial parks.  

Zambia's Debt Exposure with China

 The China Africa Research Initiative published in September 2021 a paper titled "How Zambia and China Co-Created a Debt 'Tragedy of the Commons'" by Deborah Brautigam.  

Zambia is an extreme case of principal-agent problems in Chinese lending.  Among all African countries with Chinese loans, Zambia has the second largest number (after Angola) of different Chinese contractors winning Chinese loan-financed projects, and the largest number of distinct Chinese lenders.  This multiplication of stakeholders has created fierce competition for infrastructure contracts in Zambia.

China Moves to Equity Investment in Foreign Coal Power Projects

Panda Paw Dragon Claw recently posted an analysis titled "How China's Power Companies Invest Overseas" by Wang Yan and Li Danqing, both climate campaigners with extensive experience in Chinese overseas energy investment.

The authors look at China's construction of foreign coal power projects from 2009 to 2018. Until 2012, all of the projects were based on engineering, procurement and construction (EPC) with no equity investment. In 2012, these projects witnessed the first equity investment and by 2018 equity investment had surpassed the EPC model. Most of the coal power plants were built in South Asia and Seutheast Asia. Ghana, Zimbabwe, Tanzania, Kenya, Morocco, Mozambique and Madagascar accounted for far fewer projects. Equity investment involves more risk for China. The building of coal power plants also raises serious concerns about air pollution and climate change.

Ethiopia's Power, Security and Democracy Dilemma

The Institute for Security Studies published on 15 July 2019 a commentary titled "Ethiopia's Power, Security and Democracy Dilemma" by Semir Yusuf.

The author concluded that political change has come rapidly in Ethiopia, raising expectations that the country is finally on the road to democracy. The challenge is Ethiopia's legacy of a strong state that is currently perceived as fragile and unwilling to restore security and the rule of law.

China's Engagement in the African Power Sector

The International Energy Agency published on 1 April 2019 a commentary titled "Another Look At China's Involvement in the Power Sector in Sub-Saharan Africa" by David Benazeraf and Yilun Yan.

At least 24 countries have contracted new power plants to Chinese construction companies between 2014 and 2024. Zambia is the largest investor in Chinese-added capacity, followed by Nigeria, Angola, Uganda, and Cote d'Ivoire. These five countries make up about half of the capacity added or being added by Chinese contractors, mostly due to large hydro projects. Compared to the almost 30 percent of new capacity that Chinese companies built as of 2016, the role of Chinese companies in Sub-Saharan Africa capacity additions has declined to 20 percent.

Somalia: Internal Fights Over a Small Pie

The Institute for Security Studies published on 23 October 2018 an analysis titled "Somalia's Zero-sum Politics Will See No Winners" by Omar S. Mahmood.

Somalia's federal partners continue to fight over limited resources. The author argues that the solution is to work together to expand the size of the pie rather than fight over the small one that currently defines Somalia.

The World According to China

The Diplomat published on 3 October 2018 an analysis titled "The World According to China" by Bradley A. Thayer, University of Texas at San Antonio, and John M. Friend, University of Hawaii.

The authors conclude that China is offering authoritarian values that are appealing to governments whose hold on power is threatened by U.S. principles such as the rule of law, free speech, democracy, and transparency and accountability in government. By 2049, the 100th anniversary of the People's Republic of China, they predict Beijing will expect other countries to accept the new Chinese concept of global order.

Chinese Manufacturing Investments in Africa

The China-Africa Research Initiative (CARI) at Johns Hopkins School of Advanced International Studies (SAIS) published in August 2018 a study titled "What Kinds of Chinese 'Geese' Are Flying To Africa? Evidence from Chinese Manufacturing Firms" by Deborah Brautigam, SAIS, Tang Xiaoyang, Tsinghua University, and Xia Ying, S.J.D. candidate at Harvard Law School.

The paper provides an analysis of the nature of Chinese manufacturing investments in Africa, focusing on Ethiopia, Ghana, Nigeria, and Tanzania. It explores the varieties of existing Chinese manufacturing investment and the sectors into which Chinese companies are investing. Chinese manufacturing investment in Africa is expanding rapidly but the official data on investment approvals significantly overstate the actual number of investments in operation.

CARI published a policy brief on the same subject.

South Sudan Increases Security in Oil Fields

Bloomberg published on 8 February 2017 an article titled "South Sudan beefs Up Security at Oil Fields" by Okech Francis. The article details efforts by South Sudan to increase oil production and, hence, revive the economy.

Chinese Infrastructure Engagement in Africa

The China-Africa Research Initiative (CARI) at Johns Hopkins University School for Advanced International Studies hosted on 13-14 October 2016 a conference in Washington titled "Orient Express: Chinese Infrastructure Engagement in Africa."

Videos of the panels and presentations are available below:

--Panel 1: Roads, Railroads, and Ports I

--Panel 2: Roads, Railroads, and Ports II

--Keynote Speech: Jamie Monson, Michigan State University and Panel 3: Power

--Panel 3: Power (Continued)

--Panel 4: Financing

--Panel 5: Environment and Corporate Social Responsibility

--Panel 6: Labor and Skills Transfer

China as Africa's Builder

The Diplomat published on 29 September 2016 an article titled "'China Inc.' Becomes China the Builder in Africa" by Janet Eom, Johns Hopkins University School of Advanced International Studies.

The author explains that most Chinese loans in Africa are used to build connective infrastructure such as roads, railroads, and power lines.

China, Kenya, and Coal-powered Electricity

Quartz Africa published on 28 July 2016 an article titled "The Worst Thing about Kenya's New Power Plant Isn't that Chinese Workers Are Being Brought in To Build It" by Lily Kuo.

While China has been criticized for bringing Chinese workers to Kenya to build a coal-fired power plant, the author argues that the more important concern is that Kenya is building an environmentally unsound power project.

Africa Construction Trends Report 2015: Role of China

Deloitte has just published its Africa Construction Trends Report 2015.  The number of projects qualifying for inclusion in 2015 is 301, a 17 percent increase over 2014.

The report dispels some myths about the perceived overwhelming role of China in the construction of infrastructure in Africa.  International development finance institutions funded most of the projects in 2015 followed by African governments, an amalgamation of participation by individual countries, and then China on a stand-alone basis.  China is the owner of only one project but is involved in the funding of 13 projects (4 percent) and heavily present in the construction of 42 projects (15 percent). 

Power and Influence in Africa: Algeria, Egypt, Ethiopia, Nigeria, and South Africa

The Institute for Security Studies (ISS) in Pretoria published in March 2015 a study titled "Power and Influence in Africa: Algeria, Egypt, Ethiopia, Nigeria and South Africa" by Jakkie Cilliers, Julia Schunemann, and Jonathan D. Moyer, all of ISS. 

The authors looked at Africa's "big five" over the next 25 years: Algeria, Egypt, Ethiopia, Nigeria, and South Africa on the basis that they potentially hold the greatest amount of power in Africa.  Collectively, they represent 60 percent of the African economy, 40 percent of Africa's population, and 58 percent of the the continent's military spending.  By 2040, Africa's total relative power is forecast to surpass that of the declining European Union and the United States.  At the same time, Africa will likely remain at the margins of global power because it does not speak with one voice or act in unison.  Nigeria and Ethiopia are expected to grow considerably in the next 25 years while Egypt, South Africa, and Algeria are forecast to remain stagnant or experience a slight decline. 

ISS published on 25 March 2015 a summary of the report titled "Africa and Global Power: On the Rise, but at the Margins."

African Construction Trends Report 2014

The private American company, Deloitte, published in 2015 its "African Construction Trends Report 2014".  It reviews the continent by region--Southern, West, East, Central, and North--and provides brief case studies on Kenya, Nigeria, and Mozambique. 

Investment by value of mega projects under construction in Africa grew by 46 percent in 2014, climbing from $222 billion in 2013 to $326 billion in 2014. 

China-South Africa Relations

Pambazuka News published on 19 February 2015 a commentary titled "Zuma's State of the Nation Address: A Chinasque Reading" by Bob Wekesa, a research associate with the Wits China-Africa Reporting Project. 

South African President Jacob Zuma's 12 February 2015 State of the Nation Address focused heavily on energy issues.  Wekesa points out that China was mentioned more frequently than any other country.

China, India, Russia, Brazil and the Two Sudans

The South African Institute of International Affairs published in July 2014 a paper titled "Riding the Sudanese Storm: China, India, Russia, Brazil and the Two Sudans" by Daniel Large, Central European University, and Luke Patey, Danish Institute for International Studies.

The paper offers a thematic analysis of the Chinese, Indian, Russian, and Brazilian engagements in Sudan after 2005, with a focus on the changing nature and trajectory of these relationships after the establishment of South Sudan in 2011.  The authors conclude that the aspirational normative rhetoric of South-South cooperation promoted by China and India is not congruent with the primarily extractive and infrastructure-based economic engagements that have conformed to the violent and unbalanced political economy of Sudan. 

African Construction Trends Report 2013

The private company Deloitte just released its "African Construction Trends Report 2013," which has some surprising conclusions concerning China's engagement in this field.  The report evaluates $222 billion invested in 322 African infrastructure projects that have a project value over $50 million and had broken ground by, but not yet been commissioned at, 1 June 2013.  The top sectors rated by investment value were energy and power, transport, mining, real estate and water, followed by gas and oil.

Based on this size and time-limited sample, the results are surprising in view of all the attention in recent years accorded to China's involvement in African infrastructure.  Europe/US stakeholders funded 15 percent of the projects and Chinese stakeholders funded 10 percent of the projects in the sample.  This still places China as the most important bilateral funding source, but not the overwhelming player that it is often said to be. European/US contractors built 37 percent of the projects and Chinese construction corporations built 12 percent, again a lower percentage than is often portrayed.