Chinese participation in infrastructure development in Africa: Roles and
impacts
Chuan Chen, Dr. The University of Melbourne
Challenges to Infrastructure Development in Africa Challenges to infrastructure development in Africa for
economic growth and poverty reduction:Inadequate infrastructure financing in general; and in particular,
Inadequate financing for O&M and rehabilitation of existing facilities; Lack of regional infrastructure; Inadequate investment in the electricity sector; Weak rural infrastructure; Weak private participation in infrastructure.
Weak construction and engineering capacity of the local construction industry;
High cost in infrastructure development;Weak supporting industries for infrastructure and construction
projects; Inequality in infrastructure development
Analytical Framework
Infrastructure Financing Modalities • Export credit• Conessional loan• Concessional export
credit• Grant• Commercial loan• Debt relief• Public Private
Partnership • Angola Mode
Market Entry ModesChinese AEC contractors’ market entry
modes for the African markets
Infrastructure FinancingChinese infrastructure financing commitment
in Africa 2001-2009
Infrastructure FinancingChinese infrastructure finance commitments
in Sub-Saharan Africa by Sector 2001-2009
Infrastructure FinancingType of projects with Chinese financing
commitment: Greenfield versus rehabilitation
Infrastructure Implementation Total revenue of top international contractors
in Africa by nationality
Infrastructure Implementation Procurement methods used by Chinese
contractors in Africa
Infrastructure Implementation Localization
Infrastructure Implementation Social responsibilities
Conclusions China contributes to the economic growth and poverty
reduction in Africa by taking part in infrastructure development.
Inadequate infrastructure financing in general; and in particular, Inadequate financing for O&M and rehabilitation of existing facilities; Lack of regional infrastructure; Inadequate investment in the electricity sector; Weak rural infrastructure; Weak private participation in infrastructure.
Weak construction and engineering capacity of the local construction industry;
High cost in infrastructure development; Weak supporting industries for infrastructure and construction; Inequality in infrastructure development