Return of maritime Silk Road does not forget Africa
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E-mail Xinhua, February 12, 2015
Closer ties need better infrastructure
Official data showed that two-way trade volume between China and Africa exceeded 220 billion U.S. dollars for the first time in 2014, and China has been Africa's largest trade partner for the past five years in a row.
The MSR, like its overland counterpart, currently emphasizes the building of infrastructure projects. In order to promote these projects, China funded the Asian Infrastructure Investment Bank in addition to a separate 40 billion U.S. Silk Road Fund.
While transporting a container in a cargo ship from Shanghai to Mombasa costs less than 500 U.S. dollars, transporting it from Mombasa to Nairobi, about 500 kilometers, costs 1,500 U.S. dollars due to poor transportation methods, said Zhang Baozhong.
Better infrastructure among African countries can reduce transportation cost and boost businesses, Ding said, adding that he believes the new initiative could also bring preferential tax policies and more customers though no specific plan has been released.
Confidence despite risks
China's Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives involve several cultures and 63 percent of the world's population.
The differences in cultures, customs, policies and laws, labor markets and political environment may create stumbling blocks, but most people see it as a new chance for both China and African countries.
Bethwel Kinuthia, economist with the University of Nairobi, told Xinhua in an e-mail that it is obvious the MSR unleashes a windfall for African countries in terms of new markets for products, transfer of technology and skills as well as easier mobility.
But Kinuthia also pointed out that there are often difficulties for free flow of goods and services, including poor transport infrastructure, high energy cost that undermines manufacturing, erratic weather patterns and political uncertainties.
He said sustainability is not just a buzzword but an imperative for businessmen to cement trust with communities.
"By protecting fragile ecosystems, both the Chinese and African businessmen should minimize risks and improve their image," he said.
The MSR does not forget Africa. It provides a historical chance for countries along the route. "But it is not China's own business. It needs cooperation. Win-win situation also means do-do situation," Mohamed Noman Galal, former Egyptian ambassador to China, told Xinhua.
