China's development finance for cross-border infrastructure: an East African perspective on its role in advancing developmental regionalism and regional integration.

Seyuba, Samukumba Mbanje

China's development finance for cross-border infrastructure: an East African perspective on its role in advancing developmental regionalism and regional integration.

Thesis / Dissertation

2025

Publisher

University of Cape Town

Department

Graduate School of Development Policy and Practice

Faculty

Faculty of Commerce

Abstract

This study explores whether China's development finance has contributed to regional integration in East Africa. The main research question is: has China's development finance of infrastructure projects contributed to developmental regionalism? This was supported by the sub question: has China's development finance of the Addis-Djibouti railway contributed to regional/development integration in East Africa? The study used a qualitative method and a single case study design. The Addis-Djibouti Railway (ADR) was facilitated by Chinese concessional loans to construct a cross-border railway project. The project addresses Ethiopia's landlocked status and enhances trade connectivity with Djibouti. A thematic analysis of the findings derived from six participants resulted in three themes: a) the African and Chinese approach to development finance; b) the contribution to regional integration in East Africa, and c) the contribution to developmental regionalism. The findings derived from these themes illustrate that the Addis-Djibouti Railway supports economic ties between these two nations. However, its broader impact on regional integration is limited by political instability, fragmented financing, and governance challenges. The study highlights that while China's infrastructure investments align with regional goals like the East African Railway Master Plan, they face significant barriers such as co-financing complexities and inadequate local capacity. Ultimately, the research reveals that while the railway enhances transportation and economic connectivity, the effective implementation of developmental regionalism requires the integration of both hard infrastructure—such as physical transportation networks—and soft infrastructure, including the institutional frameworks, governance mechanisms, and social systems necessary to support and sustain these physical assets. The study finds that the theoretical framework of developmental regionalism and its four pillars would allow for strategic planning and alignment with long-term regional goals which would maximize developmental benefits and foster deeper integration in East Africa.

Keywords

China

Development finance

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