chinese participation in infrastructure development in africa: roles and impacts

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