China Turns to PPPs to Fund Africa’s Infrastructure – Zambia Among Beneficiaries

China Turns to PPPs to Fund Africa’s Infrastructure – Zambia Among Beneficiaries

China has adopted a new model of financing major infrastructure projects in Africa by turning to public-private partnerships (PPPs) a shift that is already reshaping the funding landscape in countries like Zambia.

The move, analysts say, marks a significant departure from Beijing’s earlier strategy of issuing sovereign loans under its Belt and Road Initiative (BRI). Instead of lending directly to African governments, Chinese companies are now financing and building infrastructure projects in exchange for long-term operational rights, helping to lower debt risks on both sides.

In Zambia, this approach is currently being applied to the long-delayed Lusaka-Ndola dual carriageway. The US$650 million project, once marred by financing controversies and multiple false starts, is now progressing under a PPP arrangement. A consortium of Chinese firms AVIC International, Zhenjiang Communications Construction Group, and China Railway Seventh Group has already completed nearly 25% of the 327-kilometre road, which links the capital city to the industrial hub of Copperbelt Province.

The companies will recover their investment by operating the toll road for 22 years before transferring ownership back to the Zambian government.

Similar projects are underway across the continent. In Kenya, the proposed extension of the Standard Gauge Railway (SGR) from Naivasha to the Ugandan border is expected to cost US$4.5 billion, with Chinese financiers covering 40% of the cost and securing a 25-year operating license to recoup toll revenues.

China is also behind the successful Nairobi Expressway, operated by China Road and Bridge Corporation (CRBC) for 30 years, as well as the Rironi-Mau Summit Road, which was reassigned from French to Chinese contractors due to more favourable PPP terms.

“This PPP approach is the new ‘yellow brick road’ of China-Africa infrastructure development,” said Aly-Khan Satchu, a geoeconomic analyst based in Nairobi. “It reduces risk for China while shifting financial forecasting and economic responsibility away from African governments, many of which have struggled with debt sustainability.”

The PPP model presents a potential win-win for Zambia delivering long-needed infrastructure without adding to the country’s growing external debt, which stood at US$21.6 billion as of December 2024, according to the Ministry of Finance.

However, experts caution that while PPPs offer financial relief upfront, they demand strong contract management, transparency, and long-term planning from host governments.

As Zambia grapples with infrastructure gaps amid fiscal constraints, China’s pivot to PPPs could offer a viable path forward – if managed with accountability and foresight.
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May 20, 2025
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