Building Bridges : China's Growing Role as Infrastructure Financier for Sub-Saharan Africa

China and Africa have a long history of political and economic ties, which have greatly intensified in recent years. Both bilateral trade and Chinese foreign direct investment (FDI) in Africa grew about fourfold between 2001 and 2005, accompanied by a major influx of Chinese enterprises and workers into the region. The natural resource sector, principally petroleum and to a lesser extent minerals, has been the major focus for both Chinese FDI to Africa and African exports to China. The report is structured along the following sections. Section two provides an overview of the growing economic ties between China and Africa, in particular the extent of current understanding of Chinese infrastructure finance in the region. Section three examines the data available from official Chinese government sources and discusses the methodological challenges inherent in quantifying the extent of official assistance for infrastructure finance. Section four presents the headline estimates on the value of Chinese finance based on the projects database developed for this report. Section five details the economic complementarities that exist between China and Africa, based on Africa's need for infrastructure and China's natural resource import requirements. Sections six and seven present a more detailed profile of Chinese-financed infrastructure projects in Africa on a sector-by-sector and country-by-country basis. Section eight presents the available information on financing mechanisms and terms, and considers the overall impact on country indebtedness. Section nine places the phenomenon of Chinese infrastructure finance into a broader international perspective, comparing it with flows provided by traditional Organization for Economic Co-Operation and Development (OECD) financiers and other emerging players such as India and the Arab countries. Finally, section ten draws out the main conclusions and implications.

Bibliographic Details

Main Authors:	Butterfield, William, Foster, Vivien, Chen, Chuan, Pushak, Nataliya
Language:	English
Published:	World Bank 2009
Subjects:	ACCOUNTING, AFFILIATE, AGRICULTURAL PRODUCTS, BACKED FINANCING, BANK CREDIT, BANK FINANCING, BANK LOAN, BANK LOANS, BENEFICIARIES, BENEFICIARY, BORROWER, BORROWING, BOTTLENECKS, BRIDGE, BUSINESS RISKS, BUYER, CHAMBER OF COMMERCE, CHECKS, COMMERCIAL CONTRACTS, COMMODITIES, CONSULTING SERVICES, CONSUMER, CONSUMER GOODS, CONTRIBUTION, CONTRIBUTIONS, CREDIT AGENCIES, CREDIT ARRANGEMENTS, CREDIT LINE, CREDITORS, CREDITS, DEBT, DEBT RELIEF, DEBT SUSTAINABILITY, DEBTOR, DEBTOR REPORTING SYSTEM, DEBTS, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DEVELOPMENT CORPORATION, DISBURSEMENTS, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC REFORMS, EMERGING ECONOMIES, ENVIRONMENTAL IMPACTS, ENVIRONMENTAL REGULATIONS, EQUALITY, EQUIPMENT, EQUITY CAPITAL, EQUITY FLOWS, EQUITY INVESTMENTS, EXPORT FINANCING, EXPORTER, EXTERNAL FINANCE, FINANCIAL ASSISTANCE, FINANCIAL FLOWS, FINANCIAL SUPPORT, FINANCING NEEDS, FINANCING OF INFRASTRUCTURE, FINANCING SOURCES, FIRST LOAN, FOREIGN DIRECT INVESTMENT, FREIGHT, FREIGHT COSTS, FUEL, GLOBAL ECONOMY, GLOBALIZATION, GRACE PERIOD, GRACE PERIODS, GROSS DOMESTIC PRODUCT, HIGH-SPEED RAIL, HOST COUNTRIES, HOST COUNTRY, HOST GOVERNMENT, HOUSEHOLD ACCESS, HOUSEHOLDS, HOUSING, IMPORT BANKS, INCOME, INCOME LEVEL, INDEBTEDNESS, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE FINANCE, INFRASTRUCTURE FINANCING, INFRASTRUCTURE FUNDING, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PROJECTS, INSTALLMENTS, INTEREST RATE, INTEREST RATES, INTERNATIONAL AIRPORT, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCE, INVESTMENT CLIMATE, INVESTMENT CORPORATION, INVESTMENT FORUM, KEY CHALLENGE, LEVEL OF CONFIDENCE, LIGHT RAILWAY, LINE OF CREDIT, LINES OF CREDIT, LOAN, LOAN COMMITMENTS, LOWER INCOME, MASS TRANSIT, MASS TRANSIT SYSTEM, MATURITIES, MATURITY, MONETARY FUND, NATURAL RESOURCE EXPLOITATION, NATURAL RESOURCES, OUTREACH, PORTFOLIO, PRESS RELEASES, PRIVATE EQUITY, PRIVATE INVESTORS, PRIVATE SECTOR INVESTMENT, PROSPERITY, PUBLIC GOODS, PUBLIC WORKS, PURCHASES, RAIL, RAIL LINK, RAIL MASS TRANSIT, RAIL PROJECT, RAIL PROJECTS, RAIL SECTOR, RAILROAD, RAILROADS, RAILWAY, RAILWAY LINES, RAILWAY SYSTEM, RAILWAYS, RAPID GROWTH, REPAYMENT, RESETTLEMENT, RESPONSIBILITIES, RETURN, RING ROAD, ROAD BUILDING, ROAD PROJECTS, ROADS, ROUTE, SALES, SANITATION, SENIOR, SOCIAL DEVELOPMENT, SOURCE OF INFORMATION, SOURCES OF FINANCE, SPECIAL FUND, STOCK MARKETS, SUBSIDIARY, TELECOMMUNICATIONS, TOTAL COST, TRADING, TRANSPORT, TRANSPORT PROJECTS, TRANSPORT SECTOR, TRAVEL TIMES, TRUE, TURNOVER, VALUABLE, WATER SUPPLY, WEB SITES, WORTH,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20090413020329 https://hdl.handle.net/10986/2614
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