scholarly journals Identifying Forward and Backward Linkages From China's Infrastructure Investment in Africa

2021 ◽  
Vol 18 (1) ◽  
pp. 1-31
Author(s):  
Ehizuelen Michael Mitchell Omoruyi

The continent of Africa must industrialize to eradicate poverty and create jobs for its 12 million African youth who join its workforce yearly. One of the major factors hindering industrialization has been the insufficient stock of productive infrastructure that would permit companies to thrive in industries with robust comparative advantage. Within the context of Africa-China cooperation, China has emerged as a key partner to several African nations, including financing as well as constructing large-scale infrastructure projects. With emphasis on the Tazara railway, Mombasa-Nairobi railway, and Ghana Bui hydropower dam, this paper employs backward and forward linkages theory to investigate what role these three Chinese-led infrastructure projects play in African infrastructure development and what the infrastructure investment leads to concerning creating new opportunities and businesses for Africa. The paper discovers that these three Chinese-led infrastructure projects have multiple gains and linkages for and beyond the three various projects areas. Above all, these three Chinese-led infrastructure projects were seen by the Chinese government to fulfil its goals in Africa.

2009 ◽  
Vol 3 ◽  
pp. 9-15 ◽  
Author(s):  
Don Messerschmidt

‘Risk' is a major point of focus in the literature on resettlement and reconstruction associated with the impacts of major infrastructure development on project affected individuals and families. Previous approaches to risk appear to emphasize the negative consequences of development, and it is no wonder then that project affected people often emphatically resist development and change. This paper proposes that a more pro-active, positive opportunities and benefits approach be taken in dealing with resettlement and reconstruction associated with large scale infrastructure projects. The discussion is focused on the eight ‘risk factors' (or ‘opportunity factors'?) listed in the well known ‘Impoverishment Risk and Reconstruction' (IRR) Model. Three more such factors are added to the list based on field experience in South Asia. The point is that by emphasizing the potential opportunities and benefits, project affected people are more likely to be supportive of projects that may disrupt their lives. Key words: Resettlement, opportunities, risk, IRR model, South Asia, infrastructure development  doi: 10.3126/hn.v3i0.1912 Hydro Nepal: Journal of Water, Energy and Environment Issue No. 3, January, 2008 Page 9-15


2020 ◽  
Vol 10 (101) ◽  
pp. 197-211
Author(s):  
Rahla Rahat

Pakistan is going through large scale infrastructure development with most of the state-led mega projects being funded by international financing agencies. Many of these agencies have mandatory social safeguards to mitigate the negative impacts of the projects for project-affected-communities especially women. This provides the government an opportunity to advance the conditions of women in project areas. However, the gender mainstreaming efforts usually face resistance from communities on various grounds including religion. This study explores the nature of resistance on religious basis and the strategies used by the development practitioners to manage such resistance. A qualitative research approach was employed and through a purposive sampling technique participants were recruited for this study. In-depth interviews were used to collect data which was analyzed by thematic analysis. The data was collected from development practitioners working for government and international financing agencies on infrastructure projects. Resistance towards development of women initiatives are on interventions, presence of female staff in communities, and on giving access to project teams, including women, to females in communities. Major reasons for this resistance were suspicion of projects, especially if the financing agencies were Western, and the fear that development of women may result in women losing their religious and cultural values which may lead to the breakdown of the institution of family and Islamic society. The strategies to deal with these resistances include involving religious leaders as stakeholders, peer education through religious scholars, exposure visits for local religious leaders, developing gender and cultural sensitivities of the staff, meaningful consultation with community, and effective grievance redress mechanism.


2020 ◽  
pp. 205789112093815
Author(s):  
Ehizuelen Michael Mitchell Omoruyi

African nations are trying to diversify their economies in order to induce industrialization that will help them eradicate poverty and create employment for their young workforce. One of the continent’s key challenges continues to be the shortage of physical infrastructure. Therefore, finding ways to overcome this problem has become of large importance. China has identified this and has thus enhanced its involvement in Africa primarily via its swap formula. The formula enables the financing and development of infrastructure that African nations critically need by depending on their resource wealth. However, the mounting involvement of the formula has continued to stimulate questions on its impact regarding creating backward and forward linkages. As such, one of the significant aims of this article is to identify linkages that emerge from the Chinese swap formula that involve long-term concessionary loans from China’s Exim Bank to finance major infrastructure projects in Africa. It examines whether the swap formula is creating backward and forward linkages in Africa, and what the infrastructure leads to concerning creating novel opportunities for the continent, by theoretically answering this question: “Can China’s swap formula create backward and forward linkages?” Furthermore, the article theoretically identifies the benefits and linkages of the formula via a case study – that of Abuja-Kaduna railway. Arguably, the article discovers that the formula has multiple benefits and linkages for Africa. It is also seen by the Chinese government as a way of fulfilling its strategic goals in Africa.


2019 ◽  
Vol 11 (1-2) ◽  
pp. 1-13
Author(s):  
Jon Unruh ◽  
Matthew Pritchard ◽  
Emily Savage ◽  
Chris Wade ◽  
Priya Nair ◽  
...  

With the rapid increase in the number of mega-infrastructure projects underway across East Africa, how the social, economic, political and environmental repercussions of these projects intersect with ongoing conflict dynamics is a poorly understood topic. Although recent interest in large-scale land acquisitions has led to a number of detailed investigations into specific projects and trends, there has not yet been a broad, systematic review of how large-scale infrastructure developments in East Africa interact with previous, ongoing and potential conflict in their areas of operation. The objective of this article is to report on an analysis of 26 mega-infrastructure projects across Kenya, Tanzania, Ethiopia and Uganda, with an explicit focus on the common tension points that contribute to security dynamics. The methodology used involved two composite indicators of risk—a conflict risk score and a project impact score. The study found seven common tensions across all projects: in-migration, population displacement and relocation, a negative history of community relations with previous or follow-on developments, land rights, securitisation, environmental degradation and expectations of the local population relative to benefits delivered by the project. The study recommends increased attention on prior assessments that focus on the broader and more interconnected impacts in addition to those confined to the immediate project location, as well as in-depth examination of possible mitigation measures. JEL Classification: O1, O2, Q2, Q3, Q4, R1, R4


2020 ◽  
Vol 6 (1) ◽  
pp. 129-145
Author(s):  
Natalya A. Zhuravleva ◽  
Tomas Kliestik

Background: The realisation of large-scale plans of Russian infrastructure development, transport in particular, requires a corresponding methodological guidance for both planning of realisation of these tasks and development of the proper financing instrumentarium. Aim: The analysis of reasons for incompliance of programme tasks with their financing conditions; formalisation of investment trends in todays economy and description of their capability to adapt to Russian projects. Methods: The method of rising from concrete to abstract and vice versa has allowed identification of important regularities of investment trends and their connection with the quality of projects; the systems principle has confirmed dependence of successful realisation of infrastructure projects on reliability of economic development forecasts and adequacy of projects financing and management. Results: The analysis of ongoing changes of state priorities and programmes, outlined in a large number of documents regulating development of transport infrastructure in Russia, has allowed identification of influence of most significant regularities, which determine effectiveness of these solutions. All available transport infrastructure project financing sources have been systemised, considering investment volume and their status in the market. The statement that it is exactly the loan-based financing sources, concession in the first instance, that can be the most efficient in infrastructure projects realisation, has been confirmed.


Author(s):  
Andrey K. Barinov

In the article, the authors analyze the current state and prospects for the development of the transport infrastructure in the countries of East Africa. They provide latest data on projects in pipeline. Today, Africa is a dynamically developing continent with powerful economic, demographic and resource potential that will have a tangible impact on world development in the 21st century. The large-scale transformations that are taking place on the continent require an outstripping pace of infrastructure development, which, despite the success achieved, still does not meet its needs. While total capital investment in infrastructure projects in African countries in 2018 reached record level, the lack of funding remains one of the key obstacles for the development of African infrastructure. The COVID-19 pandemic that swept the world in 2020 will further exacerbate the existing gap between investment needed and investment required. The economic potential of many infrastructure projects will decline. However, according to the authors, the negative impact will not be so large-scale due to the long-term nature of the contracts, as well as the socio-economic significance of the projects. The authors of the article come to the conclusion that in the context of an epidemiological crisis, both national and foreign investors who invest in the development of regional infrastructure seek to share their risks by attracting new financial partners. This situation opens up additional opportunities for Russian companies and enterprises to enter long-term and capital-intensive infrastructure projects in East Africa, which can become a solid basis for building Russian-African economic relations.


Author(s):  
K. A. Gemueva

Chinese companies are actively involved in building infrastructure facilities in sub-Saharan Africa (SSA), with a substantial part of the projects funded by Chinese banks. According to some estimates, more than 60% of all Chinese loans granted to the SSA countries from 2000 to 2015 were provided to this end. Vast  majority of the projects are carried out by the state-owned enterprises (SOEs). Their main advantages are the opportunity to obtain concessionary financing for the project, a special Chinese model of financing, a government support of activities serving the national strategic goals and the expertise gained from the implementation of similar projects in China. Thiscombination of Chinese banks and companies is an effective tool for promoting China’s strategic economic and political interests. Meanwhile, it gives the SSA countries a unique opportunity to implement large-scale infrastructure projects necessary for further socio-economic development. China’s participation in infrastructure projects in the SSA countries began in the 1960s, and there has been a marked increase in the scale and number of projects since the first decade of the 21st century. In response to the launching “One belt, one road” initiative, the focus is shifting towards cross-border and transregional mega-projects. Chinese financing model profile described in the article comprise “tied” loans, no-political-strings-attached approach (except for the recognition of the “one China” principle), combined schemes to reduce the risk of non-repayment of loans and non-transparent transaction terms. The key areas of infrastructure development by Chinese companies in the SSA countries, i.e. energy, transport and telecommunications, are considered in detail. Particular attention is paid to the largest projects in each area. The problems arising during the implementation of Chinese infrastructure projects, as well as features of the project implementation environment on the African continent are analyzed. 


Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 15-27
Author(s):  
Suripto Suripto ◽  
Eva Dwi Lestari

Economic growth is one indicator to measure  the success of economic development in a country. Economic development is closely related to infrastructure. Infrastructure development will have an impact on economic growth both directly and indirectly. Therefore, the role of the government in determining infrastructure development policies is very important to increase economic growth in Indonesia. The purpose of this study is to determine the effect of infrastructure on economic growth in Indonesia including road infrastructure, electricity infrastructure, investment, water infrastructure, education infrastructure and health infrastructure in Indonesia in 2015-2017.The analytical tool used in this study is panel data regression with the approach of Fixed Effect Model. The spatial coverage of this study is all provinces in Indonesia, namely 34 provinces, with a series of data from 2015 to 2017 with a total of 102 observations. The data used is secondary data obtained from BPS Indonesia.The results of the study show that (1) the road infrastructure variables have a negative and not significant effect on GDRP. (2) electrical infrastructure variables have a negative and not significant effect on GDRP. (3) investment variables have a positive and significant effect on GDRP. (4) water infrastructure variables have a positive and not significant effect on GDRP. (5) educational infrastructure variables have a positive and not significant effect on GDRP. (6) health infrastructure variables have a positive and significant effect on GDRP. Keywords: development, infrastructure, investment, GDRP, panel data


2021 ◽  
pp. 1-21
Author(s):  
Andrea Ghiselli ◽  
Pippa Morgan

Abstract The nexus between China's human and economic presence abroad and its security policy is increasingly important. Within this nexus, this study statistically explores whether and to what extent Chinese contractors reduce the number of Chinese nationals they send to work in North Africa, the Middle East and the Horn of Africa when the security situation in host states worsens. We find no significant evidence that either warnings from Chinese embassies and consulates to leave host countries or expert perceptions of host stability influence the number of Chinese workers. Worker numbers appear to decrease significantly only in the aftermath of large-scale violent events. These findings suggest that Chinese companies are relatively acceptant of security risks and uncertainties, despite the decade-long regulatory efforts of the Chinese government to make them more security-conscious overseas and, thus, to reduce pressure to use diplomatically and economically expensive military means for their protection.


2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Xiang Yin ◽  
Zhiyi Meng ◽  
Xin Yi ◽  
Yong Wang ◽  
Xia Hua

AbstractChina has made great efforts to alleviate poverty in rural ethnic minority areas and targeted achieving the poverty-alleviation task by the end of 2020. Aba, Ganzi, and Liangshan, three of the poorest ethnic prefectures in Sichuan Province, Southwest China, have all implemented “Internet+” tactics since 2013, which have had the positive effect of increasing family revenues by improving communication infrastructure and encouraging the large-scale use of e-commerce. This paper aims to comprehensively investigate whether “Internet+” tactics play a key role in poverty alleviation in Sichuan’s rural ethnic minority areas and to propose further measures to enhance the efficiency of e-commerce practice. To this end, we conduct an analysis using the framework of classic growth theory and use panel data from 2000 to 2018 to examine the relationship between Communication Infrastructure Investment (CII) and a set of poverty-alleviation indicators, including local GDP growth rate (LGGR), local government revenue (LGR), and per-capita income of residents (PCIR). The results indicate that strengthening CII improves the PCIR and local economic growth, playing a key role in poverty alleviation. However, the stimulation of CII on LGGR and LGR wanes as time passes. More financial and technical actions will be needed to improve the efficiency and quality of current strategies for sustainable development in those areas.


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