With Chinese Infrastructure Financing Drying Up in Africa, China’s Contractors Now Look to Europe

Chinese workers stand at the construction site of Standard Gauge Railway (SGR) during the Presidential Inspection of the SGR Nairobi-Naivasha Phase 2A project in Nairobi, Kenya, on June 23, 2018. Yasuyoshi CHIBA / AFP

China’s construction giants are knocking on the doors of development finance agencies in Europe in a bid to find new sources of funding for projects in Africa, according to a report in Global Trade Review.

Until recently, Chinese contractors could count on a steady flow of money coming from the country’s main policy banks, the China Development Bank and the China Exim Bank, but that’s no longer the case as they’ve largely exited the business of underwriting large-scale infrastructure projects on the continent.

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths
4
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
5 Trump’s Contradictory Iran Strategy Leaves U.S. Weaker After War’s End, Says Chinese Commentator
6
Thailand in Last-Minute U.S. Talks as 36% Tariff Looms

You Might Like

Kenya’s Transport and Infrastructure Minister Explains Why Big Projects All Go to Chinese Contractors

Kenya’s straight-talking Transportation and Infrastructure Cabinet Secretary James Macheria (photo) bluntly explained why the government consistently awards major infrastructure projects to Chinese contractors: For any project, we go through a ...

German Construction Companies Struggle to Find a Way to Compete Against Chinese Rivals in Africa

European leaders have made it very clear in recent weeks that they intend to compete vigorously against Chinese rivals for a larger slice of the African infrastructure construction market. While that may sound ...

First Moody’s Now the IMF, Warnings About Kenya’s Debt Levels Are Starting to Pile Up

The International Monetary Fund raised Kenya’s risk of debt distress to high from moderate in a statement on Tuesday because of the costly impact of the worsening COVID-19 crisis. The IMF said that even ...

South Sudan Closes a Chinese-Built Highway Due to Poor Quality

South Sudan’s Vice President of Infrastructure announced this week that construction of the 392km Juba-Rumbek highway to Uganda will be suspended due to quality concerns. Portions of the road 

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP