Showing posts with label SOEs. Show all posts
Showing posts with label SOEs. Show all posts

Thursday, August 13, 2026

US and Chinese Companies Compete for Ethiopia's New Airport

 The South China Morning Post published on 13 August 2026 an article titled "US-China Rivalry Takes Flight Over Scramble for Contracts at Ethiopia's Bishoftu Airport" by Jevans Nyabiage.  

American private sector companies and Chinese state-owned companies are competing for contracts concerning the construction of Africa's largest new airport outside Addis Ababa and the supply of equipment to Ethiopian Airlines, Africa's largest.

Tuesday, August 4, 2026

US-China Competition for Ethiopia's New International Airport

 Business Insider Africa published on 30 July 2026 an article titled "Ethiopia's $12.5 Billion Airport Has Become the Latest Investment Battleground between the U.S. and China in Africa" by Solomon Ekanem.

The United States is seeking a role for its private sector companies in the development of Ethiopia's new $12.5 billion Bishoftu Airport as it challenges China's commanding position of building infrastructure projects in Africa by its state-owned companies.

The United States sees this as an opening for its construction and engineering companies and an opportunity to sell more Boeing aircraft to Ethiopian Airlines.  In addition, the Bishoftu Airport is a gateway to influence Africa's fast-growing aviation, logistics, and technology sectors.

Tuesday, May 12, 2026

Assessment of Chinese Financed and Built Light Rail Project in Addis Ababa

 The Transportation Research Interdisciplinary Perspectives journal published in March 2026 an in-depth assessment titled "The Road Divides: When Funding Shapes Form - Assessing the Connectivity Impacts of China-financed Light Rail in Addis Ababa" by Guibo Sun, The University of Manchester, and Kristen Zhao, Manchester Metropolitan University.  

Chinese loans provided $475 million for financing most of the Addis Ababa Light Rail Transit (AALRT), a system that rings the capital city.  Completed by Chinese companies almost ten years ago, the system was designed to move up to 60,000 passengers per hour.  AALRT was promoted as a showcase project for the Belt and Road Initiative.

The assessment concludes that AALRT fell far short of its promises.  Chronic service disruptions and limited maintenance funding mean only about a third of its 41 trains are operational, transporting just 55,000 passengers a day, a fraction of its projected capacity.  Instead of alleviating congestion in Addis Ababa, the system has contributed to the creation of new traffic bottlenecks, with daily life in Addis Ababa being impacted by both reduced connectivity and inadequate transfer capacity.

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.  

Sunday, January 18, 2026

China's Space Engagement with Africa

 The Center for Strategic and International Studies published on 15 January 2026 a report titled "In China's Orbit: Beijing's Space Diplomacy in the Global South" by Matthew P. Funaiole, Brian Hart, and Aidan Powers-Riggs.

China is engaging in space cooperation across the Global South and Africa has emerged as a focal point of its efforts, especially Egypt, Ethiopia, and Namibia.  This study provides satellite photography to document China's facilities in all three countries.  

Friday, December 12, 2025

China's Critical Minerals Strategy in Africa

 The Africa Center for Strategic Studies published on 9 December 2025 a paper titled "China's Critical Minerals Strategy in Africa" by Paul Nantulya.

China controls over half of global critical minerals production and an estimated 87 percent of its processing and refining capacity.  It also produces nearly 70 percent of rare earth minerals.

China's strategy for dominance in critical minerals includes a tolerance for high-risk projects, generous government support to Chinese companies, diversified access to minerals, financial support of African infrastructure linked to mineral extraction, financing the development of African mineral projects, and strategic stockpiling of critical minerals in China.  

Tuesday, June 10, 2025

Chinese Corporation Explores Cooperation with Ghana's Navy

 Military Africa published on 8 June 2025 an article titled "CATIC Visits Ghana Navy to Explore Cooperation, Enhance Maritime Capabilities" by Ekene Lionel.

Executives from the China National Aero-Technology Import & Export Corporation (CATIC) met recently with the chief of naval staff of the Ghana Navy.  This initial meeting could potentially evolve into a more formal cooperation agreement between CATIC and the Ghana Navy.  

Friday, June 6, 2025

Chinese Managers and Botswana Workers

 The Melbourne Asia Review published on 2 June 2025 an article titled "Chinese Employers in Botswana and Their Impact on Local Workers" by Liang Chen.

An estimated 15,000 Chinese work and live in Botswana.  This article is based on interviews with 34 Chinese shopkeepers/managers and 19 Batswana employees.  There is considerable tension in the workplace because Chinese shopkeepers prefer to hire workers from Zambia and Zimbabwe rather than those from Botswana who are seen as inefficient.  For their part, Batswana see the Chinese shopkeepers/managers as excessively strict.  

Tuesday, May 27, 2025

China and Egypt Sign $1.8 Billion Worth of Energy Deals

 Energy News published on 26 May 2025 an article titled "Sino-Egyptian Energy Deals Worth $1.8bn Signed during Cairo Summit."

Chinese companies signed over 30 commercial agreements valued at $1.8 billion with Egyptian partners.  Most of the deals are in the energy sector. 

Sunday, April 27, 2025

Is Chinese Company Helping the Houthis Target Ships in Red Sea?

 The National Interest published on 22 April 2025 an article titled "Is a Chinese Satellite Firm Helping the Houthis Target U.S. Ships?" by Brandon J. Weichert, senior national security editor at The National Interest.

Chang Guang Satellite Technology (CGST), a Chinese satellite company, has been "directly aiding Iran-backed Houthi rebels in Yemen by providing satellite imagery used to target U.S. and international vessels in the Red Sea," according to Tammy Bruce, the spokeswoman for the United States Department of State.  CGST denies the allegation, although it was previously accused of assisting Russia's Wagner Group in 2023 during the Ukraine War.  The Houthis have exempted from attack ships associated with China, Russia, and Iran.  

Sunday, April 6, 2025

Chinese Loans for Africa Focus on Less Risk and More Sustainable Investment

Dialogue Earth published on 31 March 2025 a study titled "Power Plays: China's Changing Energy Financing in Africa" by Wu Tianyi.

The nature of Chinese bank loans to Africa is changing. Major Chinese policy banks such as the China Development Bank and Export-Import Bank of China are decreasing financing while commercial banks such as the Industrial and Commercial Bank of China and the state-owned Sinohydro are increasing financing.  This change represents a diminished appetite for risk and prioritizing of sustainable investment. 

Thursday, March 6, 2025

China and US Compete for Africa's Critical Minerals

 The Stimson Center published on 28 February 2025 an analysis titled "Competing for Africa's Resources: How the US and China Invest in Critical Minerals" by Sydney Tucker.

China's approach to Africa's critical minerals is characterized by state-backed investments and a focus on securing long-term access to resources.  The US prioritizes private sector involvement and supply chain diversification to reduce reliance on China while pursuing clean energy, national security, and economic goals.  

Friday, February 21, 2025

Africans Beware of Both Western and Chinese Development Models

The China Global South Project published on 21 February 2025 a commentary titled "Beware False Idols: The Pitfalls of Copy-Paste Development Models" by Felix Brender, project associate at LSE Ideas.   

The author concluded: "If Western economic prescriptions failed Africa, perhaps China's State-led model is the answer.  Hardly. China's rise was predicated on conditions unlikely to be replicated elsewhere: a vast, disciplined labor force, an authoritarian state able to impose sweeping economic reforms, and, crucially, an era in which globalization was expanding, not faltering." 

Tuesday, December 17, 2024

Chinese/European Oil Project in Uganda Experiences Human Rights Abuses (in Chinese)

 Radio Free Asia published on 17 December 2024 an article titled "CNOOC East Africa Oil Exploitation: Forced Evictions, Sexual Violence and Human Rights Abuses" (in Chinese) by Tang Yuanyuan.

China National Offshore Oil Corporation and TotalEnergies are engaged in a major oil development project in Uganda that has been accused of numerous human rights abuses.  

Tuesday, November 26, 2024

US-China Competition for Africa's Critical Minerals

 The Atlantic Council published on 26 November 2024 a commentary titled "The US Won't Gain a Lead in the Competition for Africa's Critical Minerals Without Innovation" by Chris Moorman.

In order to compete successfully with China for Africa's critical minerals, it  needs to form partnerships with African countries that are economically feasible, environmentally sustainable, and ethical.  The only way to do that is by driving innovation along the critical minerals supply chain, specifically in processing and refining.

Sunday, November 24, 2024

Future of China's Renewable Energy Projects in Africa

 The Wilson Center's Africa Up Close blog posted on 22 November 2024 a commentary titled "Lights On or Off? Chinese Solar and Wind Companies in Sub-Saharan Africa" by Xiaokang Xue, Brown University.

China;s experience and overcapacity in wind and solar energy should make it a good fit for investing in projects in Africa.  But market hurdles, financing gaps, and shifting investment models create a more complicated picture.  China's new "small yet beautiful" investment model may result in innovative financing methods.

Monday, November 11, 2024

New Trends in Chinese Financing in Africa

 The UK-based Overseas Development Institute (ODI) published in October 2024 a study titled "China's Creditor Diversification in Africa" by Tianyi Wu, Oxford University, and Yunnan Chen, ODI.

China's overseas lending is evolving and diversifying.  Financing is becoming less concessional and more targeted to commercial sectors in energy and mining.  Going forward, commercial creditors are expected to increasingly focus on infrastructure sectors with clear and immediate revenue potential.  

Thursday, August 29, 2024

How the US Can Compete More Effectively with China in Zambia

 The World Politics Review published on 29 August 2024 an article titled "The U.S. Can Provide an Alternative to China in Sub-Saharan Africa" by Ben Kallas, CEO of Searchlight, and Glenn Chafetz, director of the 2340 research group.

Drawing on lessons from Zambia, the authors argue that western companies can compete successfully with Chinese companies by following better business and labor practices, aided by more appropriate U.S. government funding and giving Africa more high-level attention.

Monday, July 1, 2024

China Controls More Congo Cobalt

 Reuters published on 27 June 2024 an article titled "China's Norinco Agrees to Buy Struggling Congo Cobalt Miner Chemaf."

Family-owned cobalt miner Chemaf SA has agreed to sell assets in the DRC to Chinese state-owned China North Industries Corp (Norinco).  Chinese state-owned companies are the largest investors in the DRC's cobalt and copper mining sectors.   Chinese companies have been aggressively expanding ownership of African cobalt for its electric vehicle manufacturers.

Tuesday, June 25, 2024

Recent Trends in China-Africa Economic Relations

 CNBC Africa posted on 25 June 2024 an article titled "Why Strong Regional Value Chains Will Be Vital to the Next Chapter of China and Africa's Economic Relationship" by Chido Munyati.

This analysis looks at new and future trends in the China-Africa economic relationship.  They include a sharp reduction in China's loans to Africa, less engagement by China's state-run enterprises and more by the private sector, a focus on green energy, and lower Chinese oil imports from Africa.