Is Turkey putting pressure on China in Africa’s infrastructure market?

China's infrastructure footprint in Africa continues to deepen, with the state-owned China Road and Bridge Corporation (CRBC) recently winning a US$1.2 billion contract to modernize Kenya's Jomo Kenyatta International Airport. This development mirrors previous patterns where Chinese companies have stepped in to complete major projects after international firms encountered difficulties.

Notably, France's Vinci previously lost a significant highway deal in Kenya, which was subsequently taken over by CRBC and another Chinese firm. These takeovers raise public cost concerns, particularly when the original concession agreements place all the financial risk on the national government.

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China offered a “full suite” package that included financing, construction and often operation.

CRBC has been awarded approximately US$9.3 billion in Kenyan infrastructure contracts, according to local media reports. This substantial investment underscores China's growing influence in the region's development.

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China’s advantage stemmed from flexible financing and lower costs, he explained.

Aly-Khan Satchu, a Nairobi-based analyst specializing in sub-Saharan African geoeconomics, explained that China offers a "full suite" package. This comprehensive offering includes financing, construction, and often the operation of infrastructure projects, providing a one-stop solution for African nations.

Satchu attributed China's competitive edge to its flexible financing options and lower overall costs. He contrasted this with Western companies, stating they are "simply not competitive" due to "very elevated" prices, which are influenced by the perceived risks associated with doing business in Africa. This dynamic suggests a significant challenge for Western firms seeking to compete in the African infrastructure market.

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Western companies are simply not competitive,” Satchu said, noting that Western firms had “very elevated” prices due to the risks of doing business in Africa.