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Governance and Control

Eneqvist, Ebba LU (2025) EKHS21 20251
Department of Economic History
Abstract
This thesis examines how governance quality influences the legal and financial terms of Chinese sovereign loan contracts in Africa. With a qualitative approach, using a comparative case study of Ghana, Uganda, the Republic of Congo, and Botswana, it examines the presence and severity of clauses such as confidentiality, sovereign immunity waivers, governing law, collateralization, and dispute resolution mechanisms. By linking contract terms to World Governance Indicators, the study finds a correlation between lower governance scores and more creditor-favoring legal structures. Drawing on bargaining theory, institutional theory, and legal asymmetry, the analysis reveals that countries with weaker institutions and limited oversight are more... (More)
This thesis examines how governance quality influences the legal and financial terms of Chinese sovereign loan contracts in Africa. With a qualitative approach, using a comparative case study of Ghana, Uganda, the Republic of Congo, and Botswana, it examines the presence and severity of clauses such as confidentiality, sovereign immunity waivers, governing law, collateralization, and dispute resolution mechanisms. By linking contract terms to World Governance Indicators, the study finds a correlation between lower governance scores and more creditor-favoring legal structures. Drawing on bargaining theory, institutional theory, and legal asymmetry, the analysis reveals that countries with weaker institutions and limited oversight are more likely to accept restrictive contractual terms. However, it also highlights that this relationship is correlational, not causational, and shaped by broader politics and economics, including limited access to alternative funding and China’s evolving role as a lender. This study contributes to existing literature by offering clause-level comparisons and showing how governance context shapes legal outcomes in sovereign borrowing. (Less)
Please use this url to cite or link to this publication:
author
Eneqvist, Ebba LU
supervisor
organization
alternative title
The Legal Architecture of Chinese Sovereign Lending in Africa
course
EKHS21 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
China, Sovereign Lending, Africa, Governance quality
language
English
id
9201763
date added to LUP
2026-09-07 13:48:30
date last changed
2026-09-07 13:48:30
@misc{9201763,
  abstract     = {{This thesis examines how governance quality influences the legal and financial terms of Chinese sovereign loan contracts in Africa. With a qualitative approach, using a comparative case study of Ghana, Uganda, the Republic of Congo, and Botswana, it examines the presence and severity of clauses such as confidentiality, sovereign immunity waivers, governing law, collateralization, and dispute resolution mechanisms. By linking contract terms to World Governance Indicators, the study finds a correlation between lower governance scores and more creditor-favoring legal structures. Drawing on bargaining theory, institutional theory, and legal asymmetry, the analysis reveals that countries with weaker institutions and limited oversight are more likely to accept restrictive contractual terms. However, it also highlights that this relationship is correlational, not causational, and shaped by broader politics and economics, including limited access to alternative funding and China’s evolving role as a lender. This study contributes to existing literature by offering clause-level comparisons and showing how governance context shapes legal outcomes in sovereign borrowing.}},
  author       = {{Eneqvist, Ebba}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Governance and Control}},
  year         = {{2025}},
}