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Working Paper 127 - Chinese Infrastructure Investments and African Integration
Regional integration in Africa is important in a globalized world for African countries to reap benefits from economies of scale and to strengthen their position in international negotiations. Yet, this process has been hampered by overlapping mandates and memberships from various regional organizations. At the same time, the rise of China as a global economic power has created additional opportunities and challenges for African integration. On the one hand, Chinese investment in infrastructure is alleviating major supply side bottlenecks for further integration. On the other hand, the bilateral approach of China with individual African countries limits the possibility of addressing regional issues.