Sino-Snapshot: China's Year in Africa

Date: Jan 2017
ChinaGoAbroad (CGA) is proud to bring you Sino-Snapshot: China's Year in Africa with our partner Asoko Insight. As African economies continue to emerge, Chinese businesses are playing an increasingly sizeable role. Please consult Asoko Insight's CGA member page or their website for an overview of the opportunities Africa has to offer for Chinese companies. To join CGA, please click here.
China to invest $60 billion pledged to Africa despite the economic slowdown
Chinese ambassador to Ethiopia, La Yifan, confirmed that his country's pledge to spend $60 billion across the African continent by 2019 has not been affected by the slowdown in China's growth. The pledge was made in December 2015 at the 6th Forum on China-Africa Cooperation (FOCAC) in Johannesburg.
China and World Bank form firm to fund Africa projects
In September a consortium of Chinese firms and the World Bank teamed up to form a special investment vehicle targeting infrastructure projects in Africa. Starting with committed funds totalling $500 million, the fund plans to adopt a multi-lateral approach to supporting projects in which it is involved.
Chinese firm to invest $6 billion in new Industrial Park in Zimbabwe
Chinese firm Qingdao Hengshun Zhongsheng Group has committed $6 billion to the construction of a 20,000 hectare industrial park and accompanying power plant in Zimbabwe. Construction is expected to begin in early 2017 and will focus on the production of equipment and metal products.
China’s enormous investment in South Africa’s automotive industry
The Beijing Automobile International Corporation and South Africa's Coega Development Corporation has signed a $821 million deal, supporting the rollout of automotive production facilities in one of South Africa's industrial zones. The industrial zone initiative has attracted 54 new investors over the last four years.
China Exim Bank in new ‘big projects’ pledge for Tanzania
The China EXIM Bank has pledged financial support for large projects undertaken by the new administration. Projects it has highlighted include the construction of a standard gauge railway, the Mpigaduri Port in Zanzibar and a 400KVA electricity power line from Dar es Salaam-Chalinze to Arusha.
Nigeria seeks additional $21 billion loan from China
In August Nigeria began negotiations with the China EXIM Bank for a loan of $21 billion, adding to its outstanding debt to the bank of $1.8 billion. Faced with slumping oil prices and scarcity of foreign exchange, Nigeria's economy has been ailing over the last year.
China to give $290 million special loan to Lusophone states
Following discussion in Macau, Chinese Prime Minister Li Keqiang confirmed that $290 million would be loaned to Africa's Portuguese-speaking states over the next three years. The special loan facility will target infrastructure projects and capacity-building programs.
Uganda promotes bankable investment projects in China
A Ugandan delegation representing the Uganda Investment Authority travelled to China in November to promote fourteen earmarked projects worth $6 billion to potential investors. One of the key themes discussed was the possibility of setting up a network of industrial parks in the East African country.
China seeks free trade pact with East Africa region
Facing stiff opposition, China has reached out to the East African Community with a proposal to establish a Free Trade Agreement with the region. Local firms are not optimistic, fearing they will not be able to compete with Chinese goods entering the market.
Gambia dumps Taiwan, resumes ties with China
Following 21 years of severed ties, Gambia has formally renewed dialogue with the Chinese Government two years after it cuts ties with former ally Taiwan. Questions linger over the future of the relationship as Gambia expects to welcome in a new government in January.
Chinese companies nab Djibouti railway project (Ethiopia)
Two Chinese firms, China Railway Group Ltd (CREC) and China Civil Engineering Construction Corporation (CCECC), have secured the rights to manage and operate the landmark Addis Ababa-Djibouti railway line which will be launched for public use in January. The enormous project links the capital of landlocked Ethiopia to neighbouring Djibouti's main port.
ECOWAS signs series of major infrastructure deals with Chinese
China’s CGC Overseas Construction Group and trade bloc ECOWAS have signed five MOUs for the development of major regional infrastructure projects. These include the Trans-West African Railway and the Trans-West African Coastal Highway.
China begins construction of $2 billion railway in Zambia
Falling under China's broader pledge to spend $60 billion in Africa over the next three years, the China Civil Engineering Construction Company (CCECC) has begun construction of a $2.3 billion railway linking Eastern and Northern Zambia. The network will be 388km long when complete.
China to fund construction of Mamamah airport in Sierra Leone
China's Embassy to Sierra Leone has confirmed financial commitment of up to $200 million for the construction of phase one of the country's Mamamah Airport. The project is one of several for which China has pledged financing in the country.
Chinese company wins $2 billion Kano railway contract (Nigeria)
Two subsidiaries of the China Railway Construction Corporation Ltd have been awarded contracts to develop a $1.85 billion light railway in the Northern Nigerian state of Kano. The two phase project is expected to last four years in total.
View Profiles of Infrastructure Companies in Africa here.
Nigeria and China sign a $80 billion oil and gas contract
Nigeria reaches agreement with Chinese companies to upgrade the ageing oil and gas infrastructure of the country. The deal, however, is contingent upon the government's ability to tackle the threat of militancy in the Niger Delta and Northern states affected by Boko Haram's insurgence.
China’s RFW in $98 million Banro private placement (DRC)
Chinese mining investment fund Resource Finance Works and Banro Corporation have announced signature of an agreement regarding DRC's Twangiza Gold Mine. The deal will provide RWF with equity in the mining operations.
Chinese and Canadian firms fight over Tororo mines (Uganda)
China's Hui Neng and Canada's Frontier Exploration dispute the Chinese firm's claim over mining rights to extract phosphate from the Tororo hills region of Uganda. Uganda's Inspector General of Government is moderating the dispute.
Ethiopian gas for mass export a reality by 2019, say Chinese
The China Merchant Group has announced it will manage the LNG project at the Port of Djibouti, while Poly-GCL Petroleum Group Holding Limited will develop gas fields in southern Ethiopia. Spokespeople of both firms have announced that the necessary infrastructure to export Ethiopian gas to China could realistically be ready by 2019.
China fine-tunes oil deals with Nigeria, seeking sovereign guarantee
As Nigeria tallies up Chinese investors to its oil and gas space, China is looking for guarantees over their significant investments. A delegation in October agreed with the government that the threat of vandalism to oil and gas facilities necessitated a Nigerian guarantee that no money would be wasted.
View Profiles of Natural Resource Companies in Africa here.
China’s Exim Bank boosts Zimbabwe’s Hwange project in another mega deal
The Zimbabwean government has approved a US $1 billion loan facility from the Asian financial institution, Exim Bank of China, facilitating work to commence on the Hwange Power Project. Exim Bank has asked the contractor, Sino-Hydro Corporation, to infuse $176 million as equity into the project.
China firm wins $225 million Kipeto wind power tender (Kenya)
Kipeto Energy’s Kajiado-based wind-power project has gathered pace after it awarded China Machinery Engineering Corporation the contract to construct the plant. The project is one of the largest in Kenya's history and expected to reach completion over the course of the next two years.
Ethiopian Electric Power and China sign $98 million power transmission deal
Ethiopian Electric Power (EEP) has signed a $98 million agreement with China's TBEA Contractor Ltd that will see the current infrastructure upgraded to serve the needs of the capital city, Addis Ababa. The long term vision is to integrate the system into existing East African networks for transmission.
Chinese in major Ugandan mega sub-station investment
The Ugandan government has granted a Chinese construction firm, CAMC, a contract to build four mega sub-stations, projected to cost about $100 million. The sub-stations are planned to be developed in the Luzira, Namanve, Mukono, and Iganga industrial parks.
China to construct two 350MW coal-fired power plants in Ghana
Shenzhen Energy Group Co. Ltd. of China (SEC) is expected to construct two 350MW coal-fired power plants in Ghana. The Chinese company in collaboration with Volta River Authority (VRA) aims to construct the two power projects to meet future power demand in the country.
View Profiles of Energy Companies in Africa here.
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