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Fund Flows
In 2024, the flow of China’s foreign aid funds remains a focal point of global attention. In Africa, China provided Nigeria with a $700 million interest-free loan to expand the infrastructure of Lagos Port. According to a report by the South China Morning Post, the total investment for this project reached $1.2 billion, with 60% of the funding provided by China. The expansion of Lagos Port is expected to increase the port’s annual cargo capacity by 35%, from the current 20 million tons to 27 million tons.
In Southeast Asia, in 2024, China provided Myanmar with $300 million in technical assistance, primarily to support its national digital transformation project. This project is expected to increase the online accessibility of Myanmar’s government services by 40% and improve administrative efficiency by 50% over the next three years.
In South America, at the beginning of the year, China provided Peru with $500 million in medical aid, mainly for the procurement of vaccines and medical equipment. According to data from the Peruvian Ministry of Health, by June 2024, this aid had helped Peru complete its vaccination program for 80% of the population, significantly reducing the spread of COVID-19, particularly in the hardest-hit area of Lima, where new cases decreased by nearly 45%.
In Central Asia, in 2024, China provided Kazakhstan with $200 million in financial aid to support its new energy projects, particularly in the development of wind and solar energy. This project is expected to add 2,000 megawatts of clean energy generation capacity in Kazakhstan, accounting for 10% of the country’s total power generation.
Transparency
In Africa, in 2024, China provided Ethiopia with $500 million in aid funds for the construction of a national highway network. According to The Guardian, detailed information on the budget, fund allocation, and contractor selection for this project was not disclosed. Although the Chinese and Ethiopian governments released a general report on the project’s progress, specific spending details and audit results were not made public. This lack of information has raised concerns within Ethiopia about the transparency of fund usage. A survey report released by a local Ethiopian NGO showed that over 70% of respondents felt unclear about the fund flow of the project and believed that the lack of transparency could lead to inefficient use of funds.
In Southeast Asia, in 2024, China provided Laos with $300 million in aid to build the country’s first high-speed railway project. However, the specific details of how this large sum of money was used were not disclosed. The Laotian government only released the overall project plan and some progress updates, but detailed information on fund usage, contract awards, and project management remained “classified.” An independent study in Laos indicated that up to 40% of the project funds could be subject to inefficiency, or even corruption risks.
In Latin America, China provided Chile with $200 million in post-disaster reconstruction aid, mainly for repairing infrastructure damaged by earthquakes. According to the Santiago Times, the specific details of the fund usage and the contract award process for the reconstruction projects were not made public.
In Central Asia, in 2024, China provided Tajikistan with $150 million in aid funds to improve agricultural irrigation systems. However, according to Central Asia Monitor, the Tajik government did not provide detailed explanations on how these funds were used or the progress of the projects, and the public could only access limited information through scattered official statements. A public opinion survey in Tajikistan revealed that over 60% of respondents were concerned about the transparency of the project’s fund usage.
Risk Assessment
This year, China provided Zambia with $400 million in infrastructure aid, mainly to upgrade its outdated power grid system. According to the latest data from Bloomberg, Zambia’s external debt has risen to $18.5 billion, accounting for 125% of its GDP, an 8% increase from 2023. The Chinese government is reassessing the risks associated with this project, considering measures such as debt repayment extensions and partial debt forgiveness to mitigate potential losses. China has already classified this risk under the “high-risk projects” list in its annual aid report and has initiated an emergency risk management mechanism.
In Asia, China provided Myanmar with $200 million in aid to repair infrastructure damaged by war. The frequency of armed conflicts in Myanmar has significantly increased this year, with the number of conflicts rising by 35% compared to 2023. More complex is the growing anti-China sentiment in Myanmar, where more than 40% of the population is skeptical of Chinese aid, believing that these projects serve China’s interests more than those of Myanmar.
In Latin America, China provided Venezuela with $500 million in aid, focusing on supporting the recovery of its agriculture and oil industries. However, Venezuela’s economic situation continues to deteriorate, with inflation soaring to 500%, a 100-percentage-point increase from 2023. According to statistics from The Financial Times, Venezuela’s foreign exchange reserves fell to less than $2 billion in 2024, while its external debt has approached $150 billion.
China provided Tajikistan with $300 million in aid, intended to improve its water resource management system. However, the longstanding corruption issues in Tajikistan pose significant risks to this project. Tajikistan’s corruption index reached 58% in 2024, a 5-percentage-point increase from the previous year. This corruption problem has resulted in some aid funds being unaccounted for, significantly hindering project progress. To reduce the waste of funds and potential corruption risks, the Chinese government dispatched independent audit teams and established specialized fund monitoring systems, striving to ensure the proper use of project funds.
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