By He Wenping
On July 11 the World Bank published a report titled Building bridges: China's growing role as infrastructure financier for sub-Saharan Africa.
Unlike other reports, books and articles about Sino-African relations produced by various international institutions and European or American think tanks of different stripes in recent years, the latest World Bank report is focused on two aspects: Africa's infrastructure sector, where China is playing an enormous role and, through in-depth analysis of the sector, reaching the objective and positive conclusion that it is a fact China has been serving Africa's economic growth as a proactive driving force.
Infrastructure is the foundation for national economic development and reflects the level and potential of a country's national economic development. More importantly, it also has a direct bearing on a country's attraction to foreign investment and key lever for the environment of investment.
It is widely known that underdeveloped infrastructure is a major bottleneck hindering Africa's economic development. The primitive state of the transportation industry and horrible road conditions not only keep the cost of trade between African nations and their domestic trade very high but also choke the flow of foreign investment on the continent.
Insufficient and unstable power supply is another common drawback for African nations and even South Africa - the continent's economic powerhouse that enjoyed full, cheap supply of electricity - has begun feeling the pain of power shortage in recent years.
"Build roads and profits will come rolling in." It is from its own success in reform, opening up and economic development that China has learned the importance, necessity and great business potential of investing in Africa's infrastructural development.
The World Bank report maintains that China has constructed many bridges, railways and roads in sub-Saharan Africa, where natural conditions are harsh to say the least. The total value of Chinese financial commitments to African infrastructure projects rose from less than US$1 billion per year in 2001-03 to around US$1.5 billion per year in 2004-05, reached at least US$7 billion in 2006 then trailed back to US$4.5 billion in 2007.
Among an array of infrastructure developments hydropower plants and railways are two key areas of China's investment. With a total investment of $3.3 billion already in place, the ten hydropower plants currently under construction can add 6,000 megawatts of electricity to the sub-Saharan region, raising its power supply capacity by 30 percent.
Meanwhile, the 1,350 km of existing railways China is renovating and 1,600 km of new tracks will be a significant addition to the 50,000 km railway network in Sub-Sahara.
