China’s interests in the African continent are growing stronger every day. Chinese state-owned companies have built, financed, and now control a quarter of African ports.
Of the 231 ports in 31 African countries, China has invested in 78. The majority of them are in western Africa. As Paul Nantulia, a fellow at the Center for Strategic and International Studies at the National Defense University in Washington, points out, the main reason for this is China’s global trade ambitions, in the achievement of which the region’s strategic location plays a major role.
China Harbor Engineering Company (CHEC) was the contractor and engineering company for the Lekki Deep Sea Port in Nigeria. The company acquired a 54% stake in the port, which it operates under a 16-year lease, and receives financing from the China Development Bank.
According to China’s current five-year plan, Africa is a key part of its trade strategy. Currently, investment flows to the continent are driven by two projects: the Belt and Road Initiative and Beijing’s “exit policy” – the government’s drive to help local firms enter international markets, including Africa.
According to the five-year strategic plan document, three of the six trade corridors pass through the African continent, namely East Africa, the Egypt-Suez region, and Tunisia.
In addition, China has been interested in African liquefied natural gas in recent years and has been investing heavily in it. Until now, China has been more interested in African oil, but now the main target of Chinese businesses is African liquefied natural gas, to, on the one hand, meet increased demand and, on the other hand, reduce dependence on Australian gas.
Mozambique is one of the target countries. After the discovery of 5 trillion cubic meters of natural gas in the Rovuma Basin off the country’s northern coast, it has become an important point for global natural gas supply. China National Petroleum Corporation (CNPC) owns 20% of the $ 30 billion Rovuma liquefied natural gas project.
China is also involved in one of the projects in Mozambique, “Coral Floating Liquefied Natural Gas”, the first liquefied natural gas which was sold in 2022.
