China Pours $23 Billion to Infrastructure Projects in Sub-Saharan Africa
- February 9, 2022
- Posted by: Quatro Strategies
- Category: Infrastructure
China’s development banks provided $23 billion in funding for infrastructure projects in Sub-Saharan Africa between 2007 and 2020, more than double the amount lent by the United States, Germany, France and Japan combined.
A total of 535 public-private infrastructure projects were funded during the period between 2007 and 2020, and in those years other governments’ investments came way short of China’s. During that period, China’s total funding for infrastructure in sub-Saharan Africa was $23 billion, while all other major development finance institutions lent just $9.1 billion.
The U.S. International Development Finance Corp provided just $1.9 billion for infrastructure in the region during that period, and World Bank lent just $1.4 billion annually between 2016 and 2020.
China has been criticized in recent years for its lack of transparency and its use of collateralized loans in its funding to Africa. IMF and World Bank economists warn that many low income economies will be under threat of debt distress.
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