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#China #Company #Construction #Diplomacy #Infrastructure #Africa
Agence Ecofin
12 September 2023 Last update on Tuesday, September 12, 2023 At 8:00 AM

China's rise to power in the area of infrastructure construction on the continent has accelerated since the launch of the "New Silk Roads Initiative" in the fall of 2013.

Chinese companies won 31 percent of infrastructure construction contracts worth $50 million or more in Africa in the past year, compared to just 12 percent for their Western rivals, according to a report released on August 8. by Hinrich Foundation, a Singapore-based philanthropic foundation that works to promote sustainable global trade.

Titled “ The drums echoing: Africa’s rising clout in global trade and geopolitics ”, the report states that the rise of China in the field of infrastructure construction on the continent has increased since the launch of the “New Silk Roads Initiative (Belt and Road Initiative / BRI)” in the fall of 2013.

In 1990, Western companies won 85% of infrastructure construction contracts in Africa. In 2013, Chinese companies only won 12% of these contracts, compared to 37% for Western companies.

The report also reveals that the value of infrastructure projects built by China in Africa over the past two years has reached $155 billion. By comparison, US foreign direct investment in the continent was limited to $44.8 billion in 2021.

Citing a recent study by the consulting firm McKinsey, Hinrich Foundation also indicated that more than 10,000 Chinese companies are now operating in Africa. The combined revenues of these companies, which have invested $300 billion in the continent, are expected to reach $440 billion in 2025.

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