Sub-Saharan cities have experienced substantial annual growth rates, with some African cities accounting for over three quarters of populations. In Lagos alone, for example, the population is increasing at a rate of 77 people per hour. However, these urbanisation rates have often been associated with the increasing number of slums, urban violence, poverty and inequality.
Rising urban populations have also meant a notable strain on natural resources and the environment around them. Some policy responses to the increasing urbanisation rates have been the development of infrastructures and services targeted at marginalised groups, the mobilisation of urban financing from investors, and the diversification of economic activities African Development Bank Group, The rapid transition from rural to urban settings has challenged most African countries, while also rewarding the countries willing to invest billions in the development of infrastructure.
In recent years, the Chinese construction industry has become increasingly competitive: agencies such as the World Bank and the African Development Bank have published public data that has allowed researchers to estimate the share of contract value going to Chinese firms funding projects in different sectors of the market IDE-JETRO Report on China in Africa, Consequently, this has helped these agencies understand just how competitive Chinese construction firms really are.
While an increase in investments may positively impact the infrastructure of several African countries, in the long run, these investments pose significant risks and challenges.
Nations such as Djibouti and Tanzania have grown concerned over whether or not they will be able to generate enough economic activity to repay Chinese loans, and whether these infrastructure projects will be profitable in the long run. Sino-African political commitments were often repaid by China through the building of railroads, education hubs and hospitals throughout the continent.
