China is shifting its investment focus in Africa towards agriculture, manufacturing, industrialization, and green energy, including critical metals. This move is part of Beijing’s new strategy of prioritizing “small but beautiful” projects in the region. While there may be fewer mega projects funded through direct Chinese bilateral lending, Beijing remains committed to financing major projects crucial for China-Africa trade.
Nearly $51 billion has been allocated by China for lending and investment in Africa at the recent Forum on China-Africa Cooperation summit. Over half of this amount is in the form of a credit line. Beijing is also promoting partnerships between Chinese companies and African entities through public-private financing arrangements like build-operate-transfer agreements.
One example is the 27km Nairobi Expressway built in 2022 by China Road and Bridge Corporation, which will operate the expressway for thirty years before transferring ownership to the Kenyan government. Similar models have been implemented in Uganda, Nigeria, and Zambia, showcasing China’s evolving investment approach in Africa.
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