China, in addition to being Africa’s biggest trading partner, is building the future of the continent’s urban landscapes almost single-handedly. And in spite of
rhetoric from US president
Joe Biden and other leaders from wealthy countries on the urgent need to improve infrastructure on the continent, investment from those countries and international development banks has stagnated at levels far below what is needed.
Between 2007 and 2020, China’s two main overseas development banks invested $23 billion in infrastructure projects on the continent, according to a Feb. 9 analysis by the Center for Global Development, a US think tank. That’s $8 billion more than what the other top eight lenders combined, including the World Bank, African Development Bank, and US and European development banks, contributed.
During that period, total lending from all parties has leveled off at about $9 billion per year, less than one-tenth (pdf) of what the continent likely needs to support its growing population and meet urgent health, development, and energy challenges.
The report also finds that between all public lenders, renewable energy projects have attracted more investment than other sectors, including fossil fuels.
That may be a good thing for the global climate, but with more than half of people on the continent still lacking access to electricity,some economists argue that far more investment is needed in grid infrastructure and, in some cases, natural gas-fired power plants.
