Can infrastructure investment alone drive Africa’s industrial transformation?
This was the central question explored during a recent webinar hosted by the Africa-China Centre for Policy & Advisory (ACCPA) featuring Dr. Elisa Gambino, Lecturer in Globalisation, Trade and Development at the University of Manchester and Adjunct Researcher at the University of Ghana.
The webinar, titled “Rethinking China’s Role in Africa’s Industrial Development: Infrastructure, Trade and Manufacturing,” brought together policymakers, researchers, development practitioners and private sector stakeholders to examine how China’s evolving economic engagement is shaping Africa’s industrial future.
Rather than focusing solely on headline figures such as infrastructure financing or trade volumes, the discussion challenged participants to think more critically about the conditions under which these engagements contribute to long-term structural transformation.
Infrastructure Creates Opportunities—Not Industrialisation
A central argument presented by Dr. Gambino was that infrastructure has undoubtedly served as an important entry point for Chinese companies into African markets. Roads, ports, bridges and other major projects have improved connectivity and generated employment.
However, infrastructure alone has not automatically translated into industrialisation.
Drawing on extensive field research in Ghana, Togo and Kenya, Dr. Gambino argued that while infrastructure expands economic possibilities, industrial development ultimately depends on complementary policies, institutional capacity, productive investment and stronger domestic capabilities.
The discussion highlighted that physical infrastructure should be viewed as an enabler rather than a guarantee of industrial transformation.
Beyond Loans: Understanding China’s Evolving Economic Engagement
The webinar also examined how China’s engagement in Africa has evolved in recent years.
While Chinese policy lending for infrastructure has declined significantly, Chinese companies have continued to maintain a strong presence across the continent. Dr. Gambino explained that this resilience reflects more than access to finance. It is also supported by extensive business networks, accumulated market knowledge, institutional relationships and long-term commercial strategies developed over several decades.
This shift underscores the importance of analysing China’s engagement beyond state financing alone.
Trade Creates Both Opportunities and New Pressures
Another important theme explored during the webinar was the changing landscape of China-Africa trade.
Using examples from Ghana’s retail sector, Dr. Gambino demonstrated how Chinese businesses have expanded their presence in local markets while adapting products to meet consumer preferences.
At the same time, increased competition has created challenges for many domestic traders, particularly in sectors where imported products have transformed pricing, consumer behaviour and retail dynamics.
The discussion emphasised that trade outcomes are neither uniformly positive nor negative, but instead vary across sectors, business models and policy environments.
Manufacturing Offers Promise—But Deeper Linkages Are Needed
Turning to manufacturing, Dr. Gambino noted that Chinese investment has contributed to expanding Africa’s industrial base and creating employment opportunities.Lecturer, The University of Manchester.
Nevertheless, important challenges remain.
Technology transfer, supplier development and the integration of domestic firms into regional and global value chains continue to be limited in many cases. As a result, the broader developmental spillovers from manufacturing investment often fall short of expectations.
Participants also explored the role of industrial clusters, local supplier ecosystems and targeted industrial policies in strengthening these linkages over time.
The Importance of Local Agency
Throughout the discussion, one message remained clear: Africa’s industrial future will not be determined solely by external investment.
Instead, domestic institutions, industrial strategies, regulatory frameworks and the capabilities of local firms will play a decisive role in determining whether international partnerships generate lasting economic transformation.
The webinar reinforced the importance of moving beyond simplistic narratives about China-Africa relations towards a more evidence-based understanding of how different forms of engagement influence development outcomes.
Watch the Full Webinar
The webinar forms part of ACCPA’s commitment to fostering informed dialogue on Africa’s engagement with China and other global partners through evidence-based research and policy discussions.
Watch the full webinar here: https://www.youtube.com/watch?v=8xK-tXQO2tQ
