France has faced a significant setback in its African engagements as Kenya has decided to terminate a €1.3 billion highway expansion deal with a French-led consortium.
This move allows a China-backed contractor to take over the project, highlighting a shift in Kenya’s infrastructure partnerships and a broader trend of African nations reassessing their ties with former colonial powers.
Key Takeaways
- Kenya has canceled a €1.3 billion highway deal with a French consortium.
- The project will now likely be awarded to a Chinese contractor.
- This decision reflects a growing trend of African nations favoring partnerships with China over traditional ties with France.
- France’s influence in Africa is declining amid rising anti-French sentiment and shifting political alliances.
Background of the Deal
The highway project, which aims to upgrade 140 kilometers (87 miles) of roadway from Nairobi to Nakuru, was initially signed in Paris in 2020 during a state visit by then-President Uhuru Kenyatta.
The deal was awarded to a consortium led by France’s Vinci Highways, with participation from Vinci Concessions and the French private equity firm Meridiam SAS.
However, the Kenyan government recently reviewed the contract terms and found them unfavorable, leading to the decision to terminate the agreement.
The Kenya National Highways Authority (KeNHA) expressed concerns that the original contract placed the financial risk of low traffic volumes on the government, which was deemed unacceptable.
Reasons for Termination
The termination of the deal can be attributed to several key factors:
- Unfavorable Contract Terms: The original agreement was seen as unbankable, leading to a stalemate in negotiations.
- Financial Risk: The government was unwilling to shoulder the financial burden associated with low traffic volumes.
- Desire for New Partnerships: Kenya’s shift towards a China-backed contractor reflects a broader trend of African nations seeking new, pragmatic alliances that prioritize infrastructure development and economic sovereignty.
France’s Waning Influence in Africa
France’s declining influence in Africa has become increasingly evident in recent years. Once a dominant force in Francophone Africa, France now faces challenges as countries reassess their historical ties. Factors contributing to this shift include:
- Rising Anti-French Sentiment: Many African nations are expressing dissatisfaction with perceived economic exploitation and political interference by France.
- Political Changes: Recent coups in countries like Mali, Burkina Faso, and Niger have led to the ousting of pro-French leaders and the expulsion of French troops.
- Alternative Partnerships: African nations are increasingly turning to China for infrastructure investment and to Russia for security support, further diminishing France’s role in the region.
Conclusion
The collapse of the a €1.3 billion highway deal in Kenya serves as a stark reminder of the changing dynamics in African infrastructure development.
As countries on the continent seek to redefine their partnerships, the shift towards China underscores a broader trend of moving away from traditional colonial powers.
This development not only impacts France’s standing in Africa but also signals a new era of strategic alliances that prioritize national interests and economic growth.