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The value of loans from China to the bridging of infrastructure projects in Africa almost trebled between 2016 and 2017, from USD 3bn to USD 8.8bn, with the policy of China Development Bank and China
The African countries are the most Chinese lending are Kenya and Nigeria, which alone have almost 40% of the USD 19bn of lending to projects in sub-Saharan Africa since 2014. Kenyan projects have received around USD 4.8 bn from Chinese lenders since 2014.
Baker McKenzie and IJGlobal, the leading trade publication for infrastructure projects.
Almost half of the total USD 19bn of Chinese outbound loans for infrastructure projects in sub-Saharan Africa since 2014 were made last year (2017). Notably, Chinese lenders accounted for more than 40% of all infrastructure in sub-Saharan Africa in 2017 and its policy banks in the region.
Chinese commercial and policy bank lending for infrastructure projects sub-Saharan Africa totalled USD 3.6bn in 2014, USD 3.4bn in 2015 and USD 3bn in 2016, before spiking almost 300% to USD 8.8bn in 2017, driven by a series of large power projects across
Kieran Whyte, Head of Energy, Mining, and Infrastructure at Baker McKenzie in Johannesburg The Chinese President Xi Jinping's recent tour of African countries ahead. BRICS Summit is proof of the growing interdependence of the maturing but still fast growing Chinese economy and developing economies in Africa, "says Whyte.
" This is much more sophisticated outbound the nding than the cliché about China in the face of China. distribution badets which are reliable and meet demand; "This is little surprise," said Jon Whiteaker, editor of IJGlobal.
"It is little surprise that the power sector has grown to be the biggest recipient of Chinese policy lending in Africa. The US government may have recently jump-started its Power Africa program, but it has been a long time ago. at least 50% of the finance is provided by Mambila Hydropower Plant, valued at USD 5.8bn
Globally, infrastructure deals with significant Chinese financing has risen more than threefold since 2012, driven by other things by China's Belt & Road Initiative (BRI), going from 31 deals in 2012 to 105 deals in 2017.
The BRI is a world scale Chinese development strategy that combines the creation of a 21st Century Maritime Silk Road and a Silk Road Economic Belt. [19659002] Why is it easy to operate as a catalyst for the growth of other sectors in Africa, providin g foundation for long term economic development.
"It is also true that China is one of the world's leading manufacturers of Chinese construction equipment. economy, "he says."
Whyte notes that for investors in Africa, "A big attraction of China 's Belt & Road Initiative for both African governments and project sponsors is that it badists the speed of project implementation.
" Project stakeholders advise that the whole process is a lot quicker than other options. Chinese politics lenders badisting in providing liquidity and contributing to the speed of implementation of projects in Africa, which is necessary for Africa to participate in the roll-out of the fourth industrial revolution and the global energy transition, "he adds.
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