Infrastructure News

China’s President Xi Jinping pledged $60 billion in financing for Africa’s development and waived some debt owed by the continent’s poorest countries, batting away criticism that Chinese investments may be exacerbating a looming African debt crisis.

Xi Jinping, China’s president, has pledged $60bn for African development over the next three years while countering criticism that Beijing is trying to ensnare African governments in a debt trap.

While US politicians are ringing alarms about over-reliance on Chinese financing, analysts who study Sino-Africa relations see fresh opportunities for African leaders to negotiate deals that better serve their countries’ interests.

Chinese President Xi Jinping told African leaders on Monday that China's investments on the continent have "no political strings attached" and are not for “vanity projects”, even as Beijing is increasingly criticised over its debt-heavy deals abroad.

African countries have shown a healthy appetite for Chinese loans but some experts now worry that the continent is gorging on debt, and could soon choke.

Infrastructure growth in Africa has been seen mainly in the ICT and energy sectors while the water supply and sanitation sector is still lagging behind.

UK aid will help over 11 million people living off the grid access clean energy. UK aid is supporting the growth of innovative solar technology companies which are providing clean energy to off-grid households in Africa.

Any African country interested in making progress should follow the Rwandan model and invest in a wall-to-wall ICT infrastructure to facilitate e-governance, or risk being left behind.

The UK has pledged to provide new investment of up to £300 million to build essential infrastructure such as power, roads and water in Africa.

By leaving the EU, the UK will soon have the freedom to make new alliances — no longer bound by its role as the most reluctant member of a 28-nation bloc. The opportunity is to treat African nations as partners and equals, not as risks or charity cases.

Africa has emerged as a hotbed for solar investment. In the last three years, solar has been one of the most popular sectors for development institutions and private sector investors targeting areas with significant potential for social and economic returns.

China and Africa have, in recent years, made important progress from a batch of big projects thanks to their mutual efforts in expanding cooperation fronts and deepening collaboration in infrastructure construction.

South Africa has dropped proposals to boost supply from nuclear plants in its latest energy blueprint will increasingly harness renewable sources as it trims a reliance on coal.

After more than a decade of vaulting growth in trade, finance and investment, China’s weighty engagement is jeopardising future development prospects in Africa.

Beijing will adopt a more sustainable model for debt with African countries, a senior Chinese official said in an apparent bid to address growing criticism of the country’s global infrastructure drive.

The UK aims to generate up to £8 billion of vital public and private investment in businesses and infrastructure across Africa, to create jobs and boost growth over the next four years.This includes setting a clear ambition of mobilising £4 billion of private sector investment into the continent by working more closely with the City of London.

Theresa May has announced plans to boost Britain's investment in Africa after Brexit, during her first trip to the continent as prime minister. In a speech in Cape Town, she pledged £4bn in support for African economies, to create jobs for young people.

Higher economic growth in Africa in the coming years will lead to an inevitable increase in energy consumption, according to the International Energy Outlook 2018 report.

African countries can learn from China's experiences to develop and improve their infrastructure and financing system. But African governments have to play a leading role in infrastructure construction - it is difficult to improve infrastructure by relying solely on market mechanisms.

Increased public private partnership is needed "to reignite leadership torch" in Africa to achieve even growth and development.