A new report by the Infrastructure Consortium for Africa (ICA) has identified China as the biggest single factor driving the higher level of commitments in funding for Africa’s infrastructure development projects.
According to ICA’s annual report, Infrastructure Financing Trends in Africa 2017, has show data that US$81.6 billion was invested and committed into Africa’s infrastructure development in the year 2017.
This is the highest commitment since 2010, and an 22 percent increase from U.S.$66.9 billion compared to 2016.
The report was released at Africa Investment Forum in Johannesburg, the report says the biggest reason for the higher level of commitments in 2017 was a U.S.$13 billion increase in identifiable Chinese investments, up from U.S.$6.4 billion in 2016 to U.S.$19.4 billion in 2017.
In 2010, spending from African national and subnational governments had an increase of U.S.$3.7 billion, up from U.S.$30.7 billion to U.S.$34.4 billion in the same period.
ICA’s report said Chinese funding is not consistent, they fluctuate, the 2016 figure of U.S.$6.4 billion following a high of U.S.$20.9 billion in 2015 and a low of U.S.$3.1 billion in 2014.
In the 2017 ICA’s annual report, it said the the investment were majority towards the development of the continent’s transport, water and sanitation, energy and ICT sectors.
Photo credit- ANA