November 9, 2024
Chicago 12, Melborne City, USA
China World

China strengthens infrastructure investments in Africa

China’s presence in Africa has gained new dimensions with robust investments surpassing $300 billion in 2024. Infrastructure development is central to this partnership, which has proven vital for the continent’s economic and social transformation. Projects involving the construction of roads, railways, ports, airports, and energy systems are at the forefront of this effort, connecting regions and boosting local trade and development.

Among the most prominent projects is the Lobito Rail Corridor in Angola, linking the Atlantic coast to the Democratic Republic of Congo (DRC). The railway, a strategic route for the transport of minerals, saw a significant increase in freight volume, moving 3.5 million tons in 2024, a 12% growth compared to the previous year. This growth aligns with Angola’s ambition to become a key export hub for natural resources in the region.

In Kenya, China has been financing the modernization of transport infrastructure, including the railway line connecting Nairobi to the port of Mombasa. Built at a cost of $4 billion, the railway recorded a 20% increase in cargo volume in 2024, facilitating regional trade and strengthening Kenya’s role as a logistics hub in East Africa.

Many of these projects are linked to the Belt and Road Initiative (BRI), aimed at creating a global network of trade and infrastructure. By 2024, China had already invested over $60 billion in more than 40 African countries. These investments are expected to create new trade corridors and increase the integration of African economies with global markets.

Trade volume between China and Africa reached a record $280 billion in 2024, an 8% increase compared to 2023. This growth reflects the deepening of trade relations, with Africa exporting oil, minerals, and agricultural products, while China supplies manufactured goods and advanced technology.

In addition to transport infrastructure, China has heavily invested in Africa’s energy sector. In 2024, 12 new solar and wind power plants were inaugurated in countries such as Morocco, Egypt, and South Africa, with a capacity to generate 2.5 gigawatts of electricity. These investments have contributed to increasing the continent’s renewable energy capacity, as Africa seeks to reduce its dependence on fossil fuels.

In Zambia, for example, China invested $500 million in expanding a hydroelectric plant, increasing capacity by 500 megawatts. This project has been crucial in stabilizing the country’s power supply while strengthening the infrastructure needed for industrial development.

Despite the benefits, the growing reliance on Chinese financing raises concerns about increasing debt levels in several African countries. In Angola, for instance, debt to China has reached $22.5 billion, representing 45% of the country’s external debt. Experts warn that such debt levels could compromise future investment capacity if local economies do not grow fast enough to meet these obligations.

Additionally, there are criticisms regarding the dominance of Chinese companies and workers in these projects. In some cases, 45% of the workforce on major infrastructure projects consists of Chinese workers, limiting employment opportunities for locals and raising questions about the real benefits for African populations.

Nevertheless, many African governments continue to view China as a key partner for economic growth and modernization. By 2030, Africa is expected to be better connected and integrated into global trade, thanks to the Chinese-financed infrastructure. Projects like the Lobito Rail Corridor and the railway between Addis Ababa and Djibouti are seen as essential for the future of intra-African trade and for strengthening the continent’s position as a key player in the global economy.

In parallel, China has increased its focus on technology transfer and training the local workforce, with 100,000 African students receiving scholarships to study in China in 2024. This exchange has the potential to create a new generation of African leaders equipped to tackle the challenges of sustainable development and technological transformation.

With an increasingly modern infrastructure network, Africa is paving the way for a future of greater prosperity, connectivity, and competitiveness on the global stage, strengthening its ties with China and laying the foundation for sustainable economic growth.

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