Why are Chinese banks investing in airports in Africa and who are they?

Although China does not exactly invite external participation in its own airport development programmes, and finances them publicly at a regional and national level, it is very keen to be involved in other countries' projects around the world, where - and this is the key point - that wins it kudos and the 'soft power' that paints it as a benefactor.

That way it can assert economic influence in other fields, and particularly the mining of resources, including critical rare earth elements that are essential for its ever growing industrial expansion.

Africa is full of those elements, which is why it is one of the most popular regions for Chinese bank loans (not investments - Africa is still considered too risky for those, by many countries) to build airports, or expand existing ones.

A case in point is the new Bishoftu Airport in Ethiopia, which is already established as the most advanced aviation community on the entire continent, and where Bank of China is in negotiations to provide extensive loan finance support.

Other major contributors include China Exim Bank.

There have been over 60 Chinese financed overseas airport development deals in the last two decades, many of them in Africa.

This report identifies the attractions to both parties - the African airports and the Chinese banks - and explains how the loan deals are often tied to separate contracts that are highly favourable to Chinese construction companies and service providers.