China, which stunned western companies by expanding its footprint in Africa in the past decade to fuel its economic boom, is curtailing that construction investment as its economy cools off, according to figures released last month. Market observers now are debating whether the falloff could open new opportunities for western firms.
China government officials said last month that the country’s investment fell 40% to $1.2 billion in the first half of 2015, while the Infrastructure Consortium for Africa (ICA)—made up of G20 countries and multinational lenders—said in a Nov. 9 report that Chinese financial commitment to African infrastructure declined to $3.09 blllion in 2014 from $13.9 billion the year before.