Chinese financial institutions are significantly involved in financing airport development projects across Africa, aiming to increase China's influence and secure access to critical minerals. Unlike domestic airport projects, these overseas investments are primarily loan-based and often tied to contracts favoring Chinese firms.
One notable example is Ethiopia's Bishoftu Airport, where the Bank of China is in negotiations to provide extensive funding support. Over the past two decades, more than 60 such deals have been facilitated by Chinese banks, including China Exim Bank, predominantly in resource-rich African countries. These deals not only promote infrastructure development but also serve China's strategic interests in resource extraction and political influence across the continent.
Experts note that this approach helps China project soft power globally, especially in regions where direct investment might be viewed as risky. The arrangements generally involve loans to governments or entities, with repayment often linked to future contractual work provided by Chinese construction and service firms, thus creating a multifaceted economic impact.
This strategy illustrates China's broader approach to international influence: leveraging finance and infrastructure development as tools for diplomatic and economic advantage, particularly in Africa's developing nations, which play a vital role in global resource security.
