CORPORATE INTELLIGENCE AFRICA ISSUE 0024 | Page 10
By CIA Correspondent
ECONOMY
T
he East African countries are increasingly looking east for donor funds in the wake of slowed economic growth in China, which has already begun implementing a number of agreements it signed with African leaders in Beijing last year. However, slowed economic growth in China could derail a number of projects that the country signed with African countries last year to be implemented over a period of three years. Chinese firms, for instance, have won tenders in East Africa region worth millions of US dollars in the construction and mining industries with some already in implementation stage. In Uganda, Chinese construction firms have been awarded infrastructure projects, including the 51km Entebbe Express Highway and the 600MW Karuma hydropower station on River Nile. In Kenya, a Chinese firm - Jiangxi International – has just won a tender for construction of 39-storey office block in Nairobi to be financed by the National Social Security Fund. China’s economic growth has slowed for two quarters in a row, with concerns it could reduce further, forcing Beijing policymakers to come up with a raft of measures to protect the economy from crashing. Kenya and Uganda have publicly declared their appetite for funds from Asia, saying funds from tradition-
Why Africa is keenly following
A section of Thika Superhighway built by the Chinese contractors. (far right) Chinese engineers at work.
al Western allies come with conditions that make it difficult to spend the money on priority areas. During last year’s 5th Forum on Africa-China Co-operation meeting in Beijing China promised a line of credit and financing of development programmes through loans to accelerate growth in Africa. The line of credit facility was to be utilised a period of three years in addition to technical support in various fi [ ?H???X?YY][??Y? Y ????[Y[? ?P?ZZ?[??X?[?[?[??ZZ?[??X?\?][? ?X? ?[ ?]?? ?]X?[[?X???ZX?\?X\?????YX???ZX????[??[?B?? ? ?[??[? Y\??] ?Y[? H ?? \?Y\?H?ZZ?[??X?\?][??][?Y ?]X?[\?X\??[?\?\??] ?Y[??[?H[?Y??X?H ?[H?ZZ?[??X?[?[? ?\ []Y ???[?YX???ZX?\?X\? ??H[\[Y[?Y?\? H?^ ?YH YX\??H??[Y[? ?\ []\? ]?[?\?H??\[?Y\??\?][??[?Y??X?[???[? ?Y\? ??[ ? ?X? HY\?H ?X?]?]Y\? ] ?[[??\?H ?\?Z[?X?H]?[?Y[?[? ?[??\H?]] X[?[?Y?]\?X?Y]?Y ??[?\?H??\[?Y\? ?[[ ?? ??[?H X?????X?[ ?[??\? ?[ YHY][? ?Y??X?[? ?? X? ???L??H???UHS?SQ?S??HQ??P?HH???UHS?SQ?S??HQ??P?H??UU?UUU?HS?VS??U?H?T?S?T??S??Q????UU?UUU?HS?VS??U?H?T?S?T??S??Q???????]Z[?[Y?[??XY??X?K??] ??????]Z[?[Y?[??XY??X?K??]??