How Chinese Money Is Transforming Africa: It's Not What you Think

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Publication Date: 
30 April 2016
Author: 
Jyhjong Hwang, Deborah Brautigam and Janet Eom
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How Chinese Money Is Transforming Africa: It's Not What you Think was published by The SAIS China-Africa Research Initiative on April 2nd. 

This paper discusses two new measures which provide more detailed operational and technical management procedures for China’s foreign aid turn-key projects and technical assistance projects, respectively. The released of the two measures presents a significant step in managing China’s growing foreign aid portfolio in a more structural and transparent way. From 2000 to 2014, the Chinese government, banks, and contractors extended about $87 billion in loans to African governments and SOEs. The China Export-Import Bank and China Development Bank provided most of the loans. Only 56 percent of the loans actually materialized and are being used. The rest turned out to be mistakes, hopes, rumors, cancelled or real loans but not from China. – Read more