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Why is China financing African countries?

The Inside Story Podcast

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Navigating China's Role in African Infrastructure Financing

China plays a significant role in African infrastructure financing, particularly in regional projects that have the potential for productivity within countries like Kenya. While China has traditionally financed large cross-border projects in pieces, there is a growing call for these projects to be conceived and executed holistically. As it learns from past experiences, China is shifting towards a banking model that assesses the feasibility of projects before funding, moving away from government-to-government loans that may lead to political complications. Despite concerns about a 'debt trap,' China's share of Africa's total debt is relatively small compared to private debt, challenging the narrative that positions China as a primary source of financial distress. The relationship between China and African nations emphasizes the need for African self-determination, with China positioning itself as a supportive financier rather than an overseer of development.

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