Construction as a Springboard for Industrialisation: Chinese Overseas Construction Projects and Structural Transformation in Angola, Ethiopia and Nigeria

This paper looks at Chinese construction projects in Angola, Nigeria and Ethiopia-the three countries that registered the highest cumulative value of construction projects completed by Chinese firms in sub-Saharan Africa between 1998 and 2019. This paper firstly shows that Chinese construction projects were an important catalyst for structural transformation. Beyond providing critical infrastructure for productive sector activities, the construction boom has induced domestic manufacturing of building materials and second-round demand multipliers. This paper secondly shows that the transformative potential of construction activities is not necessarily fully realised nor stable over time due to the nature of the emerging accumulation processes. In the case of Angola and to a lesser extent in Nigeria, the government failed to adequately support demand and supply structures through complementary industrial and redistributive policies. The Ethiopian case shows that even where there were extensive efforts to support supply capacity, distributional conflicts can derail accumulation processes. Ce document examine les projets de construction chinois en Angola, au Nigeria et en ethiopie - les trois pays qui ont enregistre la plus haute valeur cumulee de projets de construction acheves par des entreprises chinoises en Afrique subsaharienne entre 1998 et 2019. Ce document montre d'abord que les projets de construction chinois ont ete un catalyseur important pour la transformation structurelle. Au-dela de la fourniture d'infrastructures critiques pour les activites du secteur productif, le boom de la construction a induit la fabrication domestique de materiaux de construction et des multiplicateurs de demande de second tour. Ce document montre ensuite que le potentiel transformateur des activites de construction n'est pas necessairement pleinement realise ni stable dans le temps en raison de la nature des processus d'accumulation emergents. Dans le cas de l'Angola et dans une moindre mesure au Nigeria, le gouvernement n'a pas reussi a soutenir adequatement les structures de demande et d'offre par des politiques industrielles et redistributives complementaires. Le cas ethiopien montre que meme lorsque des efforts considerables ont ete deployes pour soutenir la capacite d'offre, les conflits de distribution peuvent faire derailler les processus d'accumulation. Este articulo examina los proyectos de construccion chinos en Angola, Nigeria y Etiopia, los tres paises que registraron el valor acumulativo mas alto de proyectos de construccion completados por empresas chinas en el africa subsahariana entre 1998 y 2019. En primer lugar, este articulo muestra que los proyectos de construccion chinos fueron un catalizador importante para la transformacion estructural. Mas alla de proporcionar infraestructura critica para las actividades del sector productivo, el auge de la construccion ha inducido la fabricacion domestica de materiales de construccion y multiplicadores de demanda de segunda ronda. En segundo lugar, este articulo muestra que el potencial transformador de las actividades de construccion no se realiza necesariamente completamente ni es estable a lo largo del tiempo debido a la naturaleza de los procesos de acumulacion emergentes. En el caso de Angola y en menor medida en Nigeria, el gobierno no logro apoyar adecuadamente las estructuras de demanda y oferta a traves de politicas industriales y redistributivas complementarias. El caso etiope muestra que incluso donde hubo esfuerzos extensos para apoyar la capacidad de suministro, los conflictos de distribucion pueden descarrilar los procesos de acumulacion.

Automated summary

This paper examines Chinese construction projects in Angola, Nigeria, and Ethiopia, the three countries with the highest cumulative value of completed construction projects by Chinese firms in sub-Saharan Africa between 1998 and 2019. Firstly, this paper shows that Chinese construction projects were an important catalyst for structural transformation. Beyond providing critical infrastructure, the construction boom also stimulated domestic manufacturing and created demand multipliers. Secondly, the paper highlights that the transformative potential of construction activities is not fully realized or stable over time due to emerging accumulation processes. Government support for demand and supply structures through complementary policies was lacking in Angola and Nigeria, while distributional conflicts disrupted accumulation processes in Ethiopia.