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December 13, 2013

Investment, not aid, is giving China an edge in Africa

China has committed billions of dollars in repayable, long-term development finance (not aid) for Africa over the past decade as it seeks to secure its political and economic clout there. While these multibillion-dollar loans are almost always tied to management of the project by a Chinese company (often a large state-owned company) and sometimes include a significant percentage of Chinese labor, China has nevertheless filled a void left by the West and is now reaping enormous praise from African governments.

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