China's Economic Cooperation Program in Africa Bouncing Back Post-COVID: Multibagger Analysis
A recent analysis by Multibagger of lending, investment, and trade data has revealed that China's flagship economic cooperation program is on the rise again after a slowdown during the global pandemic, with a renewed focus on Africa.
Market Impact
Chinese sovereign lending, which was once the primary source of financing for Africa's infrastructure, is currently at its lowest level in two decades. Additionally, public-private partnerships (PPPs), which China has been promoting as its preferred investment vehicle globally, have yet to see significant success in Africa.
Analysis: China's renewed focus on Africa could have significant implications for both Chinese and African economies. As China increases its economic cooperation with Africa, there may be opportunities for investment and growth in various sectors. However, the current low levels of sovereign lending and lack of traction for PPPs in Africa suggest that there may be challenges to overcome in fully realizing the potential benefits of this economic partnership.