• US and European firms won 85 per cent of infrastructure contracts back in 1990, according to Hinrich Foundation report
  • But that has changed since Beijing made a strategic pivot to the continent and launched the Belt and Road Initiative


In the 1990s, about eight out of 10 contracts to build infrastructure in Africa were won by Western companies.

That started to change when China made an aggressive push into the continent, with a “going out” strategy that encouraged Chinese companies to venture overseas in search of markets and raw materials.


By 2013, when Xi Jinping became China’s president, Western firms were running 37 per cent of African infrastructure projects versus 12 per cent for Chinese companies, according to a new report by the Hinrich Foundation, an Asia-based philanthropic organization.Now, the tables have turned. Chinese companies accounted for 31 per cent of African infrastructure contracts valued at US$50 million or more in 2022, compared with 12 per cent for Western firms, the study on Africa’s growing clout in global trade and geopolitics found.



Chinese companies have built multibillion-dollar projects across the continent, including ports, railways, highways, bridges and hydroelectric dams – fuelled by Beijing’s vast Belt and Road Initiative.


“This is a big change from 1990, when US and European companies won 85 per cent of African construction contracts,” according to the study conducted by Keith Rockwell, a senior research fellow and former World Trade Organization director.Rockwell said that under the belt and road strategy, launched in 2013, China had funded mega projects worth billions of dollars such as railways in Kenya and Ethiopia and ports in Djibouti and Nigeria.


In 10 years, engagement through the initiative has exceeded US$1 trillion globally, according to estimates by the Green Finance and Development Centre at Fudan University in Shanghai.


Rockwell noted that China is also Africa’s largest trading partner, with US$250 billion in trade in 2021 compared with US$62 billion in US-Africa trade.


The study found that Chinese infrastructure projects in sub-Saharan Africa totalled US$155 billion over the past two years, and that such investments had given Beijing leverage over African governments. By contrast, total US foreign direct investment in Africa came to US$44.8 billion in 2021.

“With such close trade and business relations it’s no surprise that China is winning the lion’s share of infrastructure project contracts,” Rockwell said.


Aly-Khan Satchu, a sub-­Saharan Africa geoeconomic ­analyst, said China had been more innovative in its financing and was “significantly speedier” in making its strategic pivot to the continent.“Of course, there have been nuances in this pivot. In the early stage Africa’s balance sheet was emerging from a restructuring and debt forgiveness and therefore there was a significant amount of space and China’s lending reflected this in its ‘aggressive’ initial phase,” Satchu said.


However, Rockwell noted that China is encountering some headwinds in its dealings with Africa. He said projects including a railway in Kenya and a traffic lighting project in Ghana had been controversial and had generated negative public reaction.


He said belt and road lending had fallen by 55 per cent from 2021 to 2022 to US$7.5 billion while overall lending fell from US$28.4 billion in 2016 to US$1.9 billion in 2020. “Some of this is due to the difficulty some African countries have faced in meeting their debt obligations,” Rockwell added.


Still, he said China’s relations with Africa were “broad and deep” and likely to remain strong for many years.

According to the study, China is clearly ahead in the great power competition for political and economic relationships in Africa. During the Donald Trump era, the US turned its back on Africa, while relations between Europe and its former African colonies have deteriorated, and China “rushed to fill the void”.

That includes the exploration and extraction of critical metals such as cobalt and lithium – essential raw materials for making the rechargeable batteries that power electric vehicles and solar panels.


The study noted that Chinese companies have stolen a march on their US and EU rivals in converting metals to raw materials for batteries. Chinese companies are now sourcing lithium from Zimbabwe and Namibia while the Democratic Republic of Congo and Zambia are top sources for cobalt.


China’s share of global lithium refining capacity is 58 per cent and until similar facilities are operational in Europe, the US or Africa itself, China will be the main customer for Africa’s lithium, the study said, citing the International Energy Agency.


But it noted that Brussels and Washington are playing catch-up. To counter China’s belt and road scheme, the US and its Group of Seven partners last year pledged US$600 billion over five years to the Partnership for Global Infrastructure and Investment. Africa is likely to be the principal recipient of these funds.


The US has pledged to fund construction of the Lobito corridor railway line to transport minerals from the DRC and Zambia to the port on Angola’s Atlantic coast.

The European Union in 2021 also unveiled the Global Gateway, which aims to mobilise up to €300 billion (US$330 billion) in investments between 2021 and 2027 to counter Chinese investments in developing countries, including in Africa.


Satchu said China had an “unassailable lead” in Africa, with significant “assets” on the ground after more than two decades of engagement.

“Both the US and Europe need to come to the party in the context of the battle for minerals, which will power the new economy,” he added.


the source of this article is https://www.scmp.com/news/china/diplomacy/article/3230790/china-winning-lions-share-construction-projects-africa-study-finds


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By site-4jvpyA May 13, 2024
Environmental impacts of cement and concrete Principal among concrete’s impacts is its “ colossal ” contribution to climate change-causing emissions, say experts. Most of this huge carbon release is attributable to the manufacture of cement, a binding agent made by super heating and chemically altering limestone and clay. Cement is an essential ingredient in concrete, which is a mix of this binding agent, plus water, sand, gravel and stone aggregate). Manufacturing Portland Cement, the most common form used today, requires heating immense kilns, usually stoked with coal and coke, to above 1,400° Celsius (2,552° Fahrenheit), energy consumption that accounts for 40% of cement’s carbon footprint. However, the thermochemical process that decomposes limestone to create clinker — a core component of cement — emits the majority of emissions; it is a process that cannot be avoided. Other climate change-fuelling and potentially harmful pollutants released during production include nitrogen oxide, sulphur dioxide, and carbon monoxide, all of which have major impacts on public health. A 2023 study found that carbon emissions from cement production in developing countries (even excluding China) could reach 3.8 gigatons by 2050, compared to around 0.7Gt in 2018. This tremendous surge in greenhouse gases alone could consume a massive amount of humanity’s remaining carbon budget to keep the world within 2° C (3.6° F) of warming; a planetary boundary which if crossed will have grave global consequences , says study co-author Dabo Guan, professor in climate change economics and the low carbon transition at the University College London. Health concerns While scientists warn urgently about cement and concrete’s climate footprint, they also note other important localized concerns. Poorly regulated cement plants contribute significantly to air pollution , emitting a host of harmful pollutants including heavy metals and particulate matter , with production also estimated to contribute to around 10% of global mercury emissions , or 2,200 tons each year. “A lot of focus is on how to mitigate [cement’s] climate change impacts,” says Christopher Oberschelp, senior researcher and lecturer at ETH Zurich. “But we’re forgetting that we’re also having other very big problems in terms of human health” connected to its production. In 2020, scientists estimated that, along with climate impacts, producing concrete causes around 5.2% of particulate emissions smaller than 10 microns and 6.4% of particulate emissions smaller than 2.5 microns; these tiny particles can penetrate deep into the lungs, so are associated with a host of health problems. The researchers calculated that the global climate and health cost of concrete equates to $335 billion per year. That cost will almost certainly rise as new quarries are dug and cement plants are built in the poorly regulated developing world. These health concerns extend from workers’ exposure at mines , quarries and cement plants, and beyond to surrounding communities , says Phoka Rathebe, associate professor of environmental health at the University of Johannesburg. Research by his team linked cement plant workers’ exposure to the development of chronic obstructive pulmonary diseases , while he notes multiple other studies have found a host of respiratory illnesses and a range of health impairments connected to production. Cement plants also raise questions of environmental justice, with research showing they are often disproportionately sited in low income communities of color in the United States for example. A 2019 review paper notes that cement plant pollutants may have a “toxic activity on respiratory airways, reducing the dynamic lung function, increasing the risk of respiratory symptoms and diseases with a possible carcinogenic effect,” though that study also underlined issues with many studies. Another paper , for example, noted that pollution problems may be specific to individual facilities, but not at others, and emphasized that targeted research is needed in developing countries, particular those in Africa where there’s a dearth of information on the industry’s health impacts. Oberschelp says existing technology could reduce air pollution and health impacts by minimizing and capturing pollutants. But the upgrade and modernization of cement plants is lagging, particularly in developing countries. “One good thing about this is that [because these impacts are localized,] local government can have good control over the health impacts,” he adds. “If they set the [precautionary principle inherent in the] boundary framework, then the cement industry can adapt,” curbing health effects.  Cleaning up cement and concrete The industry has principally pulled on three levers so far to begin addressing its carbon emissions, says Ian Riley, CEO of the World Cement Association — improving energy efficiency, swapping out coal and other fossil fuels for “less carbon intensive fuels,” and reducing the proportion of cement clinker (a major CO 2 source). Other analysts emphasize a current “boom” in research and innovation to clean up cement, including the exploration of solutions that follow a circular economy model. First off, replacing fossil fuels in the cement making process with alternative fuels could greatly reduce the industry’s carbon footprint. But while projects to electrify cement kilns are underway they’re unlikely to come online at scale for more than a decade, according to a GCCA net-zero roadmap . Another promising solution focuses on making “ low-carbon concrete .” Limestone calcined clay cement, for example, offers a 40% CO 2 reduction over traditional Portland cement and is being considered where calcined clay is available. Utilizing waste materials as fuel or as aggregate ingredients — including fly ash left over from coal production, and blast furnace slag from steel production — could also reduce emissions, as could agricultural waste , say experts. Researchers are also exploring more radical solutions, such as the use of algae to replace quarried limestone . All of these ideas are at varying stages of development and deployment, though some may never fully reach the scale required to fulfill future concrete demand, says Riley. “Even today, nobody has a solution to avoid the emissions [generated by clinker production],” he notes. Riley and others suggest carbon capture and storage, or utilizing waste CO 2 within the production process, could one day offer a clinker carbon solution. Sucking up the carbon produced during the cement making process and then storing it in newly made concrete is envisaged as the ideal solution. Some companies are already applying this method. Canada-based CarbonCure , for instance, injects captured CO 2 into concrete where it mineralizes and becomes trapped. “Zero carbon cement and concrete will absolutely require CO 2 utilization technologies like ours,” says company CEO Robert Niven, though he adds that this is just one part of a package of solutions needed, which includes such innovations as ramping up the use of recycled concrete aggregate. Carbon capture has great potential to reduce cement’s footprint, according to Alastair Marsh, a research fellow in alkali-activated materials at the University of Leeds, but he adds that the “proof is in the pudding in terms of how quickly, effectively and at what cost [the technology] can be scaled up.” Other experts warn that the cost and energy required to install next generation cement technology, particularly in developing countries where demand will be highest, may be out of reach for many economies. “The hope is that the technology [including carbon capture and electrification] will remove all emissions from cement production. However, that technology sounds good and sounds optimistic, but we don’t have it yet,” says Mohammad Ali, with the Institute for Manufacturing at the University of Cambridge. However, he adds, “There are solutions that can be implemented almost straight away, alongside the development of technology.” Given that the majority of future carbon emissions from cement and concrete are expected to come from developing countries, Gabo expresses the urgent need for developed nations to invest in solutions which rapidly cut their own emissions, while also supporting developing countries with capacity building and technological advancements. “We need to have those alternatives cements and other technologies spill over as quickly as possible to the Global South,” Gabo says, so that living standards can improve there, while keeping the emission curve flat.
By site-4jvpyA May 13, 2024
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