Chinese funding of the Global South: The role of the State Development Bank of China in the African economy

Abstract

The article examines China’s financing of the development of the Global South, provides quantitative data, including the implementation of the Chinese initiative “One Belt, One Road”. The author concludes that China, its banks, including the State Development Bank of China (CDB), are actively financing projects and programs in African countries within the framework of “mutual assistance among developing countries”. Projects are being implemented in various sectors of the economy, including infrastructure, agriculture and industry. Project financing is complemented by the development of export-import relations between China and African countries, which involve a large number of Chinese enterprises. China and African countries use the FOCAC forum for three-year project and program funding planning. In 2021 at FOCAC, the Chinese leadership not only significantly reduced the amount of funding, but also changed its order: now the resources will go to African financial institutions, which will finance the projects. The CDB, through which China finances projects to a large extent both in Africa and in other countries of the Global South, draws on its many years of experience in the selection, evaluation and implementation of projects in Africa. This makes it possible to ensure the selection of high-quality and relevant for China projects in African countries, to carry out their successful implementation and, as a result, create conditions for economic growth.