As African cities experience some of the fastest urban growth rates in the world, China has become a major bilateral financier for urban infrastructure.
From Nairobi’s elevated expressways to Lagos’s airport upgrades and Addis Ababa’s new riverside developments, Chinese-backed projects are transforming skylines and daily life across the continent.
I study China’s economic engagements in Africa, focusing on how development is enacted, negotiated, and contested across sites of production, governance, and everyday life.
My recent analysis of 267 Chinese‑financed projects in Addis Ababa (Ethiopia), Kinshasa (Democratic Republic of Congo), Lagos (Nigeria), Luanda (Angola), Lusaka (Zambia) and Nairobi (Kenya) shows that while China delivers an impressive volume of infrastructure, it risks reinforcing Africa’s national government dominance in decision-making on urban infrastructure development.
The completion rate, and the speed at which most projects are finished, is impressive. But that’s only part of the equation. Cities – their governments and residents – are excluded from the project planning and negotiation process.
Across my project dataset, none of the infrastructure deals were financed directly through municipal governments. Instead, the agreements were mostly negotiated and funded through national ministries or state agencies. This happens partly because many cities are legally restricted from taking on external debt, and partly because lenders prefer working with sovereign governments.
This national-level dominance has far-reaching consequences for how African cities develop. When cities are not involved in financing negotiations, they lose the opportunity to align major infrastructure projects with long-term urban development plans.
China’s expanding footprint
African cities face massive infrastructure shortfalls. The African Union estimates that urban areas require about US$142 billion every year to build and maintain essential systems. In this context of urgent need, China has become one of the most important bilateral financiers helping to fill the gap.
The six cities examined in my study are the biggest urban centres in their respective countries. Together they house only about 13% of national populations. Yet they receive nearly 30% of all Chinese infrastructure financing flows into those countries.
Between 2000 and 2021, Chinese lenders committed about US$37 billion to urban infrastructure in these six cities. Transport projects account for the largest share, over US$17 billion. This is followed by social projects such as housing, schools and hospitals, which drew more than US$8 billion. Digital networks, electricity systems, water infrastructure and government buildings made up the remainder.
These investment patterns mirror the continent’s biggest infrastructure gaps, especially in transport and education, as identified in a 2022 UN-Habitat report.
Most of this financing is in the form of loans rather than grants. Loans represent nearly 68% of all projects and almost 89% of the total money committed to the six cities. The terms vary widely. Some loans are offered at very low interest rates. Others are closer to commercial rates, sometimes approaching 7%, with repayment periods stretching up to two decades.
Digital infrastructure projects often come with more favourable terms, though they are often tied to Chinese technology suppliers. Two large Chinese development banks, the Export-Import Bank of China and the China Development Bank, provide nearly 94% of project lending.
One notable feature of Chinese finance is the speed at which many projects are completed. Of the projects with available information, about 74% were completed. Many were completed within two to three years.
This is a relatively high rate compared with typical attrition levels in infrastructure projects across the continent.
The overall completion rate shows a capacity to deliver infrastructure projects at speed.
Still, speed and scale tell only part of the story. Equally significant is who negotiates the terms of lending.
Bypassing city authorities
Local governments are often mandated to implement projects and operate new infrastructure. Yet they lack the power or resources to do so.
In 2020, subnational governments across Africa received only 24% of total public spending, well below the global average of 39.5%. Weak property tax systems, heavy reliance on transfers from central government, and restrictions on borrowing leave most cities with limited fiscal autonomy.
Chinese financing, while substantial, has not altered this structural imbalance.
It’s not that cities don’t get funding at all. As urban hubs in their respective countries, the six cities under study often attract high-profile, foreign-funded projects. The projects elevate a city’s skyline. But they often don’t address neighbourhood-level gaps in water supply, transit access, or environmental services.
My other research indicates that large, showcase projects funded by China often take precedence over localised, community-level improvements. Thus infrastructure is unevenly provided in urban areas.
Cities need fiscal power
If African cities are to manage the rapid urbanisation and meet the needs of the roughly 1.5 billion people expected to live in urban areas by mid-century, they need more than new bridges and roads.
They need the fiscal power and planning capacity to plan, finance and govern infrastructure on their own terms.
Based on my research findings, these steps would be useful:
- rethink how urban infrastructure is discussed
- strengthen municipal revenue and financial capacity
- improve planning coordination across governments.
Firstly, it is crucial to rethink how urban infrastructure is discussed in policy and the media. For years, the conversation has revolved around the idea that African cities simply lack enough roads, pipes, grids and public facilities.
While the shortfalls are real, this framing can reinforce the belief that only large, externally financed megaprojects can solve urban problems. It also risks sidelining the diverse and often creative ways communities already provide services when formal systems fall short.
Instead of viewing cities solely through the lens of what they lack, policymakers should also recognise the hybrid networks that public, private or community actors establish to keep daily services running. Examples of these include housing collectives in Harare and smart water meters in Nairobi.
Strengthening these systems requires a broader, more inclusive vision of what urban infrastructure can be.
Secondly, municipal revenue and financial capacity needs to be strengthened.
For cities to gain real decision-making power, they need stronger and more reliable sources of revenue. That means improving property tax systems, developing transparent land-based financing tools, and ensuring residents have equitable access to productive sector employment.
Some cities, such as Lagos, have already built robust tax bases and even issued municipal bonds to finance major projects.
But reforms cannot just happen at the city level. National governments must give municipalities clearer legal authority to raise revenues and borrow responsibly.
And when countries do rely on external finance, they need strong safeguards in terms of transparent bidding processes, rigorous project evaluations, and clear rules for how risks and costs are shared. Without oversight, long-term contracts can saddle cities with high user fees or hidden financial liabilities that become burdens on future budgets and residents.
Thirdly, planning coordination across governments and sectors must be improved.
Urban infrastructure does not function in silos. Transport depends on land use, water systems depend on energy, and digital networks depend on both. Yet planning is often fragmented across ministries, sectors and international partners.
A more coordinated approach is essential. National and local governments should work together through joint planning committees, shared databases and consultation processes that ensure new projects fit into long-term city strategies. Giving city governments and community groups a seat at the table, especially in the early stages of feasibility studies and project design, will help prevent mismatches between high-profile investments and everyday needs.
Reliable information is central to this effort. Many African countries still lack systems to track external financial flows, project progress, evaluation and management. Building comprehensive data systems is a cornerstone of transparent and responsible governance.
China’s involvement across multiple sectors offers an opportunity to pursue more integrated planning. The recent summits of the Forum on China-Africa Cooperation have pledged efforts to institutionalise subnational cooperation. But these will only be effective if African governments actively and strategically shape the agenda.
The challenge for African cities is not simply attracting more finance but gaining the authority and capacity to guide urban development. China will likely remain an important financier. But no external partner can substitute for strong city institutions, transparent financial systems, and coordinated planning.
Ding Fei, Assistant Professor, Cornell University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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