China Leading Global Transportation Investment in Africa
July 15, 2109 (EIRNS)—A new report has identified China as the largest non-continental investor in rail and transportation projects in Africa, and shone a light on the potentials of the New Paradigm economy. China now has 21.3% of an investment market now estimated at $430.3 billion. The figures were compiled by Project Insight (a firm which creates business management software), whose authors tracked 448 “large-scale transportation projects” involving road, rail and bridges, across the continent. The authors highlight that both the IMF and Africa Development Bank project—even with existing infrastructure density—forecast continued growth for the region, and state that this growth rate will only increase when these projects are realized.
The executive summary of the 31-page report takes particular note of the Chinese influence throughout the continent. “China has made numerous investments across Africa,” they write “becoming a major financier of key transport projects in the region. At least five African countries have had their railway systems funded by China: Kenya, Ethiopia, Angola, Djibouti and Nigeria.
“Based on the pipeline of projects tracked by the publisher, Chinese contractors are involved in road and railway projects that account for 21.3% of the overall project pipeline value,” followed by France, Turkey and the U.K. (with 3.4%). The leading investors are China Railway Construction Corporation Ltd. with $47.3 billion invested; followed by Power Construction Corporation of China (PowerChina) ($12.18 billion); and China Communications Construction Corporation ($9.4 billion).
Looking at the entire continent, the report states: “When completed in their entirety, the tracked projects will total over 110,000 km in length (54,110 km for roads, 55,345 km for railway and 599 km for bridges) of which 75,297 km will be newly constructed, 29,197 km will be upgraded and 5,561 km will have an element of both construction and upgrade, crisscrossing the African continent.”