(Ecofin Agency) - The Middle East has surpassed Africa as the top recipient of Chinese commitments under the Belt and Road Initiative, launched by China in 2013. However, Guinea, Liberia, the Republic of Congo, and Morocco still rank among the top five countries where Chinese investments saw the highest growth rates over the past year.

China has committed a total of $29.2 billion to projects across Africa in 2024 through its Belt and Road Initiative (BRI), The Green Finance & Development Center (GFDC), a think tank at Fudan University, reported on Feb. 27.

The report, titled China Belt and Road Initiative (BRI) Investment Report 2024, shows that Chinese investments and infrastructure contracts in Africa grew by 34% compared to the previous year.

Despite this significant increase, Africa has lost its position as the largest recipient of Chinese investments under the BRI. In 2024, the Middle East took the lead with $39 billion in commitments, surpassing Africa’s total. The continent attracted $13.24 billion in investments, a 48% increase from 2023, and $15.97 billion in construction contracts, which saw a 26% rise.

Notably, four African countries were among the top five globally in terms of the highest growth rates in Chinese commitments in 2024. Guinea saw a staggering 1,935% growth, followed by Liberia (+1,900%), the Republic of Congo (+1,800%), and Morocco (+724%).

Sector-wise, China focused on several key areas in its African commitments. Energy projects accounted for 31% of total investments, followed by mining (17.6%), technology (14.3%), and transportation (12%).

Increased Focus on Sustainable Projects

The mining sector, with a total of $21.4 billion in investments, surpassed the transport sector in 2024, largely due to rising investments in critical mineral exploitation across Africa, Latin America, and Indonesia.

In the energy sector, China made its most environmentally focused investments since the launch of the Belt and Road Initiative. Investments in clean energy, including solar, wind, hydroelectric power, and waste-to-energy projects, amounted to over $12.4 billion—a 60% increase compared to 2023.

The report also highlights that Chinese commitments in 2024 covered 340 projects across 87 countries that are part of the BRI. The overall value of these commitments reached a record high of $121.8 billion, up from $92.3 billion the previous year.

Shift Toward Construction Contracts

While investments made up 42% of the total Chinese commitments in 2024, this marks a decline from 53% in 2023. This suggests that Chinese companies are taking fewer risks and increasingly favoring construction contracts, which are often financed by loans from Chinese banks to foreign governments.

Since the launch of the BRI in 2013, China’s total commitments under the initiative have reached $1.175 trillion. The project aims to enhance trade connections across Asia, Europe, Africa, and beyond through the construction of critical infrastructure such as ports, railways, airports, industrial parks, and power plants.