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China’s Role in the African Infrastructure Financing Crisis

African infrastructure financing is facing a crisis. Financing levels have plunged from $100 billion a year in 2014 to just $31 billion last year, according to a new report published by the international law firm Baker McKenzie.

This is a massive setback for the continent that’s been working hard to fill a gaping infrastructure deficit the AfDB conservatively estimates is valued somewhere around a trillion dollars over ten years. And the situation has been made worse by the dramatic pullback in overseas development financing from China’s two largest policy banks that have been the dominant funders of African infrastructure over the past 5-6 years.

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