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Why China Wins in Africa - Dangote on Power of Credit

Nigerian billionaire Aliko Dangote has said China dominates the African business landscape because it is more willing than the U.S. or Europe to provide long-term financing and credit for major industrial projects. Dangote said Chinese firms succeed by leveraging strong, state-supported financing structures that simplify the execution of large-scale infrastructure for African investors and governments.

He said Chinese suppliers often provide equipment on credit - backed by export insurance - allowing businesses to spread payments over several years. "If I go to Italy and they ask for a $500 million check for a power plant, but the Chinese offer to finance the project with only 20% down and a five-year payment plan, which one would you choose?" the businessman asked rhetorically.

Dangote said, however, that the U.S. is becoming more competitive. He referenced recent engagement with the U.S. International Development Finance Corporation (DFC), stating the agency has become increasingly aggressive in supporting African infrastructure and industrial investments.

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Aliko Dangote

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