TheChinese-builtSoubreHydroelectricPowerStationisinauguratedinSoubre,Coted鈥橧voireonNovember2,2017XINHUA
In2013,anambitiousprogrambytheChineseGovernmentknownastheBeltandRoadInitiativewaslaunched,focusingonpromotingpolicycoordination,connectivityofinfrastructureandfacilities,unimpededtrade,financialintegration,andstrengthenedpeople-to-peopletiesthroughaconsultativeprocessandjointefforts,withthegoalofbringingbenefitstoall.TheBeltandRoadInitiativeoryidaiyilucomprisestheSilkRoadEconomicBeltandthe21stCenturyMaritimeSilkRoad.
ThemainreasonbehindthelaunchoftheBeltandRoadInitiativewastostrengthenChina鈥檚connectivitywiththerestoftheworld.TheBeltandRoadInitiativeconsistsoftwomajorparts:the鈥淏elt,鈥漺hichrecreatesanoldSilkRoadlandroute,andthe鈥淩oad,鈥漺hichisnotactuallyaroad,butaroutethroughvariousoceans.TheBeltandRoadInitiativehasemergedasChina鈥檚multi-billion-dollarinitiativewithgiganticmarketingcampaigntopromotewinwincooperationacrosstheglobe.TheBeltandRoadInitiativetargetsfivemainareas:policy,infrastructure,trade,financeandpeople-to-peopleexchange.Itcombinesnewandoldprojects,coversanexpansivegeographicscope,andincludeseffortstostrengthenhardinfrastructure,softinfrastructureandculturalties.
Currently,theBeltandRoadInitiativeuptakehasgrowntoincludecountrieswithacombinedGDPofmorethan$23trillionandmorethanhalfofthetotalglobalpopulation.Lastyear,duringtheBeltandRoadForumforInternationalCooperationheldinBeijingunderthetheme鈥淪trengtheningInternationalCooperationandCo-buildingtheBeltandRoadforWin-WinDevelopment,鈥滳hinesePresidentXiJinpingwasconfidentthattheBeltandRoadInitiativewilldelivergreaterbenefitstopeopleacrosstheworld.Healsonotedthat,atthetime,68countriesandinternationalorganizationshadsignedtheBeltandRoadcooperationagreementwithChina,withroundtablediscussionsbringingtogetherheadsoftheUnitedNationsunits,theWorldBankGroupandtheInternationalMonetaryFund.TheBeltandRoadInitiativeisadvancingsteadily,guidedbytheprinciplesofextensiveconsultation,jointcontributionandsharedbenefits.
BeltandRoadInitiativeinAfrica
InAfrica,justlikeinotherpartsoftheworld,theBeltandRoadInitiativehassignificantlytransformedthecontinent鈥檚infrastructurallandscapewithkeyprojectsbeingundertaken,suchasthebuildingofgasandoilpipelines,shippinglanes,railways,roads,portsandeconomiccorridors,amongothers.Thisisthekindofinfrastructurethatisneededtospureconomicgrowthanddevelopment.TheBeltandRoadInitiativehasbeeninstrumentalinsupportingindustrializationinAfricainlinewiththeUN2030AgendaforSustainableDevelopment,theAUAgenda2063andindividualAfricancountries鈥檇evelopmentplans.
OneofthekeyhighlightsoftheBeltandRoadInitiativeisitsgoalofconnectingChinaviarailandshippinglinkswithmajormarketsintheMiddleEast,CentralAsiaandAfrica,whichwillopentradeingoodsandservicesbetweennations.ThroughtheBeltandRoadInitiative,manyAfricancountrieshavebeenabletobenefitfromtheChinese-fundedprojectswhichhavepromotedthegrowthofthemiddleclass鈥揹rivingupconsumptionanddomesticdemandforgoodsandservicesintheeconomy.
SincethelaunchoftheBeltandRoadInitiativefiveyearsago,ChinahasbeenworkingwithAfricancountriesinaligningtheirdevelopmentstrategiesandpriorities.InKenya,thisinitiativehasbroughtaboutworld-classinfrastructurefacilities鈥揳keypillaroftheVision2030economicdevelopmentblueprintthataimstotransformKenyaintoanewlyindustrialized,middle-incomecountrybytheyear2030.TheconstructionofthestandardgaugerailwayinKenyathatconnectsNairobitothetouristcityofMombasaatacostof$3.8billionhasbeeninstrumentalinthemovementofpeople(especiallydomesticandforeigntourists),goodsandservicesfromtheportcitytootherpartsofthecountryandtheregion.InEthiopia,localsarebenefitingfromtheconstructionofthe700-kmAddisAbaba-DjiboutirailwaylinebuiltbytheChinesecompanywhichhasreducedboththecostanddurationoftransportingpeople,goodsandservicesbetweenthetwocountries.
Therailwaylinehasalsocreatednewopportunitiesforconstructionofindustrialparksalongitscorridor,thusboostingproductionintheleather,textileandagriculturalsectors.,Alandlockedcountry,EthiopiadependsontheportofDjiboutiformorethan90percentofitsimportsandexports,andsothenewrailwaylinehasbeeninstrumentalinreducingthedeliverytimeofgoodsbetweenAddisAbabaandDjibouti,therebyeasingthecostofdoingbusinessinEthiopiaandattractingforeigndirectinvestment.SomeoftheotherBeltandRoadInitiativeprojectsinAfricaincludethebuildingofthecoastalrailwaylineinNigeria,theBagamoyoPortinTanzania,andtheMphandaNkuwaDamandHydroelectricStationinMozambique.Since2013,theBeltandRoadInitiativehasbeenabletopromotetrade,fosterfinancialinclusionandfacilitatepeople-to-peopleexchanges.
Targetedinvestment
AsChinacommemoratesfiveyearsoftheBeltandRoadInitiative鈥檚existenceandaswelookintothefuturetoevaluatethestrengths,weaknessesandopportunitiesoftheBeltandRoadInitiative,thereisaneedforChinatofurtherpromoteanexchangeofideas,transferoftechnologyandcapacitybuildingsothatindividualcountriescantakeovermanagementofprojectssoonerratherthanlateruponcompletion.ItisalsorecommendedthatChinaoffersmoregrantstoAfricancountriesasawayofmitigatingthepossibleriskofdefaultingloanpaymentsduetounsustainabledebtlevels.
FortheBeltandRoadInitiativetofly,ChinaalsolistenstoAfricanvoicesthatcontinuetocallforincreasedinvestmentinsectorsthathavequickerreturns,likemanufacturingandservices,asopposedtothesolefocusoninfrastructuralprojects,whicharecapitalintensive,yetreturnswillbefeltonlyinthelongrun.ForthenextphaseoftheBeltandRoadInitiativetoremaintransformative,AfricangovernmentsmustharnessChinesePresidentXi鈥檚goodwilldemonstratedbytherecentpronouncementsatthe2018BeijingSummitoftheForumonChina-AfricaCooperationtoseekfruitfulcooperationthatwillcreatejobs,alleviatepovertyandpromotegrowthonthecontinent.
**Commentsto
**ThewriterisaKenyaneconomist,consultantandaregionalcommentatorontradeandinvestmentCurrently,theBeltandRoadInitiativeuptakehasgrowntoincludecountrieswithacombinedGDPofmorethan$23trillionandmorethanhalfofthetotalglobalpopulation.