An article on Zhihu.com discussed China‘s aggressively building ports in Africa:
According to statistics, by 2025, Africa will have a total of 231 operational commercial ports. Among them, Chinese companies are involved in around 78 ports across 32 African countries, playing roles as builders, financiers, or operators.
- China is involvement in 35 port development projects in West Africa, where China began its overseas port investments. In addition, there are 17 projects in East Africa, 15 in Southern Africa, and 11 in North Africa.
- Chinese firms also provide financing for certain port development projects and the money usually goes to Chinese companies who are the contractor.
- China’s involvement in African port is gradually shifting toward a Build-Operate-Transfer (BOT) model. Currently, Chinese companies hold operating concessions at 10 African ports.
While these projects benefit local communities, they also bring substantial economic returns to China. According to estimates by Price Waterhouse Coopers, for every $1 China invests in African ports, it can generate up to $13 in trade revenue.
China’s port building efforts in Africa also yield other benefits:
- They help secure resource trade. Africa remains an important source of natural resources for China. It has long been a core region for China’s “Going Global” strategy, but poor port infrastructure has been a major bottleneck for expanding China-Africa trade.
- China has an urgent need to export its excess capacity abroad as China’s domestic infrastructure development has reached saturation,
Overall, infrastructure building is a symbol of hard power, showcasing China’s financial strength, advanced technology and equipment, and professional talent to the world. At the same time, Chinese companies working in Africa also demonstrate China’s soft power, shaping international perceptions and enhancing its image among African nations and the global community.
Source: Zhihu.com
https://zhuanlan.zhihu.com/p/1916100738100213585