Showing posts with label state-owned enterprises. Show all posts
Showing posts with label state-owned enterprises. Show all posts

Wednesday, September 29, 2021

China's Belt and Road Financing: Implications for Africa

 AidData, a research lab at William and Mary, published in September 2021 a massive study titled "Banking on the Belt and Road: Insights from a New Global Dataset of 13,427 Chinese Development Projects."

The study captures 13,427 projects worth $843 billion in 165 countries from 2000-2017, a period that began before the announcement of the Belt and Road Initiative (BRI).  

Five key conclusions result from the study:

1.  There was an extraordinary expansion in China's overseas development finance program during the first two decades of the 21st century, most of which was other official financing (OOF) and not overseas development assistance (ODA).  OOF consisted almost entirely of loans and export credits priced at or near market rates.  

2.  China's state-owned commercial banks have assumed an increasingly important role during the BRI.

3.  An increasing level of credit risk have created pressure for stronger repayment safeguards.  Collateralization has become the linchpin of China's implementation of a high-risk, high-reward credit allocation strategy.

4.  The implementation of the BRI has marked an important transition in how China bankrolls infrastructure projects.

5.  Some 35 percent of the BRI infrastructure project portfolio has encountered major implementation problems such as corruption scandals, labor violations, environmental hazards, and public protests.


Africa accounted for 25 percent of the US dollar value of global Chinese official finance from 2000-2017.  Africa received 42 percent of the ODA and 20 percent of the OOF.  The highest African recipients of ODA were Ethiopia ($6.57 billion), Republic of Congo ($4.24 billion), Sudan ($2.57 billion), Ghana ($2.22 billion), Zambia ($2.10 billion), Kenya ($2.03 billion), Cameroon ($1.46 billion), Mozambique ($1.40 billion), Senegal ($1.27 billion), Mali ($1.06 billion), and Cote d'Ivoire ($0.92 billion).  The highest African recipients of OOF were Angola ($40.65 billion), Ethiopia ($8.90 billion), Sudan ($7.85 billion), Kenya ($7.02 billion), and Nigeria ($6.82 billion).   

Monday, January 26, 2015

Chinese Agribusiness Entrepreneurship in Ghana and Nigeria

The China-Africa Research Initiative at Johns Hopkins University published in January 2015 a policy brief titled "Chinese Agribusiness Entrepreneurship in Africa: Case Studies in Ghana and Nigeria" by Yang Jiao, a PhD candidate at the University of Florida. 

The policy brief explores the motivation, challenges, and initial social impact of a private Chinese agribusiness enterprise in Ghana and a Chinese state-owned enterprise in Nigeria. 

Wednesday, April 23, 2014

Chinese Direct Investment in Africa

Thierry Pairault recently published a good analysis titled "Chinese Direct Investment in Africa: A State Strategy?" in Region et Developpment.  He reviews available statistical and informational databases in order to analyze the actual importance of Chinese direct investment in Africa and to infer its strategic importance.  He reaches a series of conclusions, including that China does nothing that the rest of the world has not already done or would not do in its place.