China Doesn’t Plan on Slowing Investments in Africa: Here’s How and Why

While China’s gaze towards Africa is nothing new, its interest in Africa is set to increase in the coming years.

“In the past few years, Chinese investment in Africa has exploded. While the US currently has $58 billion worth of investments in Africa and China has $40 billion, the US’s investments in Africa have been dropping over time. Consider the fact that in 2014, the US pledged to invest $14 billion in Africa over the next decade. China pledged to invest $175 billion in the same time period, dwarfing the US’s commitment.

Unlike the US, China’s investments mainly take the form of loans for infrastructure development. In contrast, US investment is focused on aid programs—primarily healthcare and education. Many Africans welcome China’s investment into much-needed infrastructure, but it’s not clear how much of a benefit African nations are seeing. One major issue is that many countries are becoming excessively indebted to China. Kenya, for instance, has $50 billion of debt, 72% of which comes from China. In Senegal, highways, industrial parks, and other infrastructure projects are being funded by a $1.6 billion loan (source in French). Djibouti has received $1.1 billion in loans to upgrade its seaport and to build a railway to Addis Ababa, a water pipeline from Ethiopia, and a new airport.”

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