China enjoys 13:1 return on port investment

China has the greatest incentive to invest in improving African port competitiveness, according to PwC Capital Projects and Infrastructure (CP&I). In its analysis of port development in sub-Saharan Africa it says China is the region’s biggest trading partner in both imports and exports. “High port logistics costs, poor reliability and low economies of scale in trade volumes have a direct negative impact on both Chinese and African trade growth,” it says. PwC estimates that China
contributes only 15% of the total external port investment budget, whereas it holds 20% of the volume of trade with the region. The return on investment for China equates to US$13 in trade for every US$1 invested in port infrastructure. “Despite the media attention on the importance of China’s infrastructure contribution to Africa, the evidence shows that Chinese investment is significantly smaller in relative terms to that of Africa’s other trading partners,” it says.