Abstract
ABSTRACT For many years, Chinese infrastructure finance has been secured by African governments to provide infrastructure of national significance, while cities continue to lack fiscal tools for the provision of large-scale urban infrastructure. This article not only demonstrates that Chinese infrastructure finance is being extended to municipal authorities in Africa to undertake critical urban infrastructure but also scrutinizes the urban dynamics and local impact of using Chinese infrastructure finance for urban regeneration. Through empirical scrutiny of the regeneration of Kotokuraba Market in Cape Coast, Ghana, findings reveal that municipal authorities, like national governments, are subjected to political and embedded conditionalities. However, the conventional resource-backed repayment conditionality characteristic of Chinese-funded national projects differs from the project finance model—relying on the project’s cash flow for repayment—adopted in Cape Coast. We found in Cape Coast a locally-driven emphasis on affordable rents that stands in stark contrast to the practice of project finance, resulting in potential default of the Chinese loan. The wider consequences of this disjuncture for urban development, financing and governance in Cape Coast, Ghana, and Africa are discussed.
Highlights
African countries are generally believed to be confronted with large backlogs of urban infrastructure, spanning sectors such as commerce, transport, sanitation, housing, water and electricity among many others (Collier & Venables, 2016; Korah & Cobbinah, 2016; Obeng-Atuah, Poku-Boansi, & Cobbinah, 2017; Obeng-Odoom, 2009; Odoom, 2017), there are variations among sectors, cities and countries (Foster & Briceno-Garmendia, 2010)
Based on qualitative empirical research, this study argues that while municipal authorities are subjected to the same types of political and embedded conditionalities as are national projects, the project finance repayment model of municipal projects differs from the resource-backed model of national projects
Cape Coast has been a beneficiary of the District Development Facility (DDF) and Urban Development Grant (UDG) since the inception of the two schemes, but these awards have been for development of small social projects in the metropolis
Summary
African countries are generally believed to be confronted with large backlogs of urban infrastructure, spanning sectors such as commerce, transport, sanitation, housing, water and electricity among many others (Collier & Venables, 2016; Korah & Cobbinah, 2016; Obeng-Atuah, Poku-Boansi, & Cobbinah, 2017; Obeng-Odoom, 2009; Odoom, 2017), there are variations among sectors, cities and countries (Foster & Briceno-Garmendia, 2010). It is argued that “the cost of addressing Africa’s infrastructure needs is around US$93 billion a year” Africa ranks at the bottom of all continents in most dimensions of infrastructure performance (Alves, 2013; World Bank, 2017), prompting African leaders to call on Western and Chinese development agencies as well as private investors for support in this sphere (Foster, Butterfield, Chen, & Pushak, 2009). Some scholars argue that Africa should prioritize urban regeneration in its domestic policy, through smart and innovative solutions (Collier & Venables, 2016), otherwise the continent risks lagging behind other regions in all aspects of societal advancement.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
