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Belt and Road Initiative Making Progress in Africa

SUMMARY

On July 25th, Chinese President Xi Jinping visited Johannesburg, South Africa for the 10th BRICS (Brazil, Russia, India, China, and South Africa) summit. During his visit, Xi signed Rwanda and Senegal on to Belt and Road Initiative (BRI) projects, though additional details are still forthcoming. Additionally, some Chinese analysts predicted that a visit to Senegal will extend the Belt and Road to the Atlantic Coast. China has already been active in investing in Senegal, working on projects such as the Foundiougne Bridge and the Thies-Touba Highway, led by the China International Water & Electric Corp. The goal of such investment was to promote tourism, development, and improve trade infrastructure. Rwanda agreed to 15 BRI agreements which included projects focused on visa exemptions for diplomatic and service passport holders, cooperation on geological surveys, and concessional loans to fund key road projects. China’s lending to Africa rose from $100 million in 2000 to $12 billion in 2015. Moreover, China also plays a major role in building infrastructures in Africa. By 2013, there were total 322 large-scale projects for infrastructural development began in Africa, 12% of these projects were taken by Chinese companies. 37% were shared by European and American companies.

FAO GLOBAL ASSESSMENT

In order to take advantage of the opportunities associated with the upcoming China-sponsored construction projects, American small and medium companies should consider entering joint-ventures with Chinese companies, especially construction companies. Additionally, the infrastructure projects planned for Senegal and Rwanda may make it easier for international trade and foreign investment to occur, potentially providing a window of opportunity for western firms to enter those markets. There are opportunities to get involved in the support services and downstream supply lines to many of these projects as Chinese ventures are often in need of Western expertise.

Related Links

  1. South China Morning Post: China and Rwanda to seal belt and road deals on Xi Jinping’s strategic influence tour of Africa
  2. Bloomberg: Belt and Road Initiative Bolsters China’s Africa Ties
  3. Asia Times: With Senegal deals, China’s Belt and Road reaches across Africa
  4. Russian Times: ‘West wants only quick buck from Africa, while China invests for win-win cooperation’
  5. Global Times: China, Senegal sign Belt and Road cooperation document
  6. The Washington Post: Xi Jinping is visiting Africa this week. Here’s why China is such a popular development partner.

International Policy Associate- Ziqing Zhang

Ziqing “Sunny” Zhang is an international policy intern and a Masters student in the Elliott School of International Affairs at George Washington where she is majoring in Asian Studies with a concentration in international development and focusing on East Asia and development in Southeast Asia. A native Chinese speaker, Ziqing is fluent in both Mandarin and Cantonese as well as English. She has previously interned at the U.S.-China Education Trust, the Japan-American Society of Washington, DC, and is an alum of American University in Washington, DC.

Like Us Today

Brandon Hughes is the founder of FAO Global, a former Senior Regional Analyst-Asia for Planet Risk. He has previously worked with the U.S. Army, the Carnegie-Tsinghua Center for Global Policy, and Asia Society. He is a combat veteran and has conducted research on a wide variety of regional conflicts and foreign affairs in countries as diverse as China, Myanmar, Afghanistan, and Kosovo. Brandon holds a L.L.M in International Relations from Tsinghua University, Beijing and a Bachelors in International Business and has studied at Johns Hopkins University, Beijing Language & Culture University, and Rangsit University, Thailand. He has extensive overseas experience focused on international business, international security and U.S.-China relations.