Chinese Projects In Africa Primarily On Infrastructure – Deloitte

Chinese Projects In Africa Primarily On Infrastructure – Deloitte

From Business Report

China funds about 4 percent of the infrastructure projects in Africa but constructs about 15 percent of the projects on the continent, according to Deloitte’s 2015 Africa Construction Trends Report.

However, JP Labuschagne, the Africa infrastructure and capital projects leader at Deloitte South Africa, said yesterday that China’s role in Africa varied considerably across the various regions on the continent.

Labuschagne said China was the owner of only one project in Africa but was funding 13 projects, and was heavily involved in the construction of 42 projects on the continent.

He said China was involved in 15 percent of infrastructure projects in southern Africa and was heavily involved in other regions, particularly in east Africa and central Africa.

The report said the government was the second-highest provider of funding after international development finance institutions, followed by the amalgamation of the participation of all singular countries’ financing, and then by China on a stand-alone basis.

This is the third edition of the report, which tracks infrastructure trends in Africa based on projects that are included on public databases, valued at more than $50 million (R719m) and in construction by June.

Liquidity crunch

The number of projects increased 17 percent to 301 this year from 257 last year with the total value of projects under construction increasing 15 percent year on year to $375 billion from $325bn.

The majority of projects fall into the transport (37 percent) and energy and power (28 percent) sectors, with water projects accounting for 8 percent of the total number of projects, mining 7 percent, oil and gas 6 percent and real estate 6 percent.

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