China’s big money is returning to African infrastructure as its state-owned firms evolve from mere builders into long-term financiers and operators.
This is so they have enough “skin in the game”, according to one analyst, as Beijing seeks lasting influence over key transport routes and critical mineral supply chains in Africa.
Across the continent, these companies are increasingly financing, building and operating key infrastructure under public-private partnerships (PPP). This financing model became increasingly common after the decline in bilateral loans after 2016, as Beijing rethought its risk exposure and lending model while dismissing “debt-trap” accusations.
Outside the Kenyan capital of Nairobi, state-owned firms China Road and Bridge Corporation (CRBC) and Shandong Hi-Speed Road and Bridge International (SDRBI) have broken ground on a 233km (145-mile), US$1.3 billion highway to Kenya’s western regions. It is expected to be completed before Kenya holds presidential elections in 2027.
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How China is reshaping its economic ties with Africa
How China is reshaping its economic ties with Africa
CRBC, partnering with Kenya’s National Social Security Fund, will build the 139km Nairobi-to-Gilgil section, while SDRBI will handle the remaining 94km to Mau Summit for the vital trade corridor.
