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Financing Africa's transition minerals: Chinese capital, control structures, and developmental constraints

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  • Mbate, Michael

Abstract

This paper examines the financial architecture and developmental implications of Chinese mineral financing in Africa. Using a dataset of 33 Chinese-financed mineral projects between 2006 and 2021, it shifts the focus from the volume of lending to the modalities of finance that condition Africa's bargaining power and position within global mineral value chains. The analysis shows that financing is highly concentrated - sectorally in copper and cobalt and institutionally in USD-denominated megaprojects dominated by state-linked entities. Loan terms with short grace periods and rigid repayment schedules, combined with implementation control by Chinese firms, constrain African agency and limit domestic value retention. Conceptually, the study demonstrates the usefulness of viewing resource governance through financial architecture, where repayment structures, equity shares, and risk allocation operate as mechanisms of control. It concludes that without stronger negotiation capacity, regulatory oversight, and regional coordination, Chinese mineral finance may reproduce extractive dependence rather than support long-term industrial development.

Suggested Citation

  • Mbate, Michael, 2025. "Financing Africa's transition minerals: Chinese capital, control structures, and developmental constraints," Resources Policy, Elsevier, vol. 111(C).
    • Handle: RePEc:eee:jrpoli:v:111:y:2025:i:c:s0301420725003319
    DOI: 10.1016/j.resourpol.2025.105789
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    Keywords

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    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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