China Still Funding Africa’s Infrastructure Projects Amidst Economic Slowdown

China Still Funding Africa’s Infrastructure Projects Amidst Economic Slowdown

Over the last decade, China has grown to become one of the largest trade partners with sub-Saharan Africa countries, with the region benefiting from numerous Chinese investments.

A recent slowdown in the Chinese economy has however made many analysts to doubt that some mega infrastructure projects that were being funded by the world’s second largest economy would come to fruition.

According to a new report by British financial advisory firm Deloitte, named the ‘2015 Africa Construction Report’, China still remains “the largest source of finance for infrastructure projects in Africa.”

The report showed that the Asian giant has supported a total 301 infrastructure projects across Africa in different sectors, ranging from transport, energy, mining, real estate, water supply and telecommunications, Xinhua reported.

It showed that the total value of mega projects on the continent stood at $357 billion in 2015, a 15 percent increase from 2014.

Of these projects, Southern Africa contributed the biggest share with 109 projects worth $140 billion, followed by West Africa with 79 projects values at $116 billion.

East Africa, particularly Kenya and Ethiopia, are the biggest beneficiaries of mostly Chinese financed projects, with 20 and 12 upcoming infrastructure projects in just these two countries out of the 61 ongoing constructions in the region.

“China is the largest financing country although it is not as active in West Africa or Southern Africa,” The Star quoted Mark Smith, Deloitte’s partner for capital projects, as saying during a press briefing in Nairobi on Tuesday.

Gabriel Ouko, Deloitte’s partner for infrastructure and capital projects, said that even if China-funded projects get affected by the economic crisis it is facing, other new investors from the US and Europe will take over.

“We are seeing new investors coming in like in the last one or two years interest by US is increasingly growing,” Ouko said.