Future-proofing Africa-China infrastructure cooperation

The document assesses the impact of Chinese infrastructure funding and construction in the Global South, specifically comparing experiences in Africa and Southeast Asia. It identifies systemic failures in transparency, land acquisition, and long-term sustainability planning, while noting that Chinese contractors often follow the 'host country principle' of adhering to local norms. The brief argues that while China is shifting toward 'green development' and smaller projects due to debt distress and domestic policy changes, the primary responsibility for higher ESG standards lies with recipient governments. Key recommendations include the creation of joint ESG dialogue platforms between the AU and ASEAN, the normalization of publishing loan contracts, and the fast-tracking of local capacity-building plans.

• China has shifted its infrastructure strategy toward smaller projects and innovative public-private funding models due to depressed growth in the Global South and an increased risk of debt distress caused by the COVID-19 pandemic and the Ukraine crisis.
• Chinese contractors typically follow the 'host country principle', meaning they aim to conform to the norms of the recipient country even if those norms provide insufficient ESG protection.
• The strength of a recipient country's regulatory environment directly impacts ESG outcomes; for example, Indonesia's stronger regulations limited the environmental impact of coal-fired power compared to Zimbabwe, where low government standard-setting led to poor ESG standards.
• A lack of transparency in tender processes and loan negotiations, often stemming from weak domestic financial governance, has damaged the reputations of both Chinese contractors and recipient governments.
• Infrastructure projects in Kenya and Malaysia, specifically Lamu Port and Kuantan Port, caused damage to marine environments and fisheries, leading to community resistance such as the 'Save Lamu campaign'.
• There is a disparity in local labor usage between regions, with research indicating that Chinese companies make more effort to employ local labor in Southeast Asia than in Africa, which threatens the long-term sustainability of projects in Africa.
• Controversies surrounding land compensation for projects like the Standard Gauge Railway in Kenya were primarily the responsibility of Kenyan actors, though they still caused reputational harm to Chinese contractors.

APA

South African Institute of International Affairs (2022). Future-proofing Africa-China infrastructure cooperation. https://saiia.org.za/research/future-proofing-africa-china-infrastructure-cooperation/

Chicago

South African Institute of International Affairs. Future-proofing Africa-China infrastructure cooperation. 2022. https://saiia.org.za/research/future-proofing-africa-china-infrastructure-cooperation/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Future-proofing Africa-China infrastructure cooperation |date=1 December 2022 |url=https://saiia.org.za/research/future-proofing-africa-china-infrastructure-cooperation/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2022futureproofing, author = {{South African Institute of International Affairs}}, title = {{Future-proofing Africa-China infrastructure cooperation}}, institution = {South African Institute of International Affairs}, year = {2022}, month = dec, url = {https://saiia.org.za/research/future-proofing-africa-china-infrastructure-cooperation/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }