As China's investment strategies change, African partners face risks



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When the Nairobi-Mombasa Railway, funded by China, opened in May 2017, it became Kenya's largest infrastructure project and a major achievement for President Uhuru Kenyatta.

The line cuts the journey time in half and promises to make the goods much cheaper to ship. But in August, widespread administrative problems, including online ticketing problems and the day of travel, blocked the passengers, leaving some wondering whether the project had been completed.

. The railroad costs Kenya nearly $ 4 billion and can take decades to pay. Environmentalists worry about the impact on a vast nature reserve, and independent analysis suggests that Kenya would be overpaid, according to a study compiled by the China-Africa Research Initiative (CARI) at Johns Hopkins University.

  FILE - Protesters protest against the standard railway route (SGR) being built by the Chinese government, which has to cross the Nairobi National Park, at a rally in front of the embassy The People's Republic of China in Nairobi, October 17, 2016.

FILE – Protesters protesting the Standard Gauge Railway (SGR) road being built by the Chinese government, which is to cross the Nairobi National Park, during 39, a rally in front of the Embassy of the People's Republic of China in Nairobi, October 17, 2016.

Africa and China invest in large-scale infrastructure projects like the line Nairobi-Mombasa. Half a dozen railways have been launched in recent years, as well as dozens of other infrastructure projects, including bridges, dams, roads and power plants. These projects seem to benefit all parties. However, they often lack appropriate control, and transactions are conducted with little transparency.

Experts are concerned that the tendency of African governments to industrialize may turn against them and that seemingly useful projects become white elephants. Chinese involvement in African infrastructure dates back to the 1960s when talks began with Tanzania and Zambia to build an ambitious post-colonial railway from Dar es Salaam. in Kapiri Mposhi, just north of the Zambian capital, Lusaka. The TAZARA line, built by China and financed by an interest-free loan of more than $ 400 million, is still operating, despite maintenance problems and occasional strikes. China's first major infrastructure project, the longest More recently, China has shifted its commitment to resource-rich countries in West Africa such as Angola and China. Nigeria to the emerging economies of East Africa such as Kenya and Ethiopia.

  FILE - A woman passes by a Chinese Construction site in Lubango, Angola, March 5, 2014.

FILE – A woman walks past a Chinese construction site in Lubango, Angola, on March 5, 2014. [19659006NewpartnershavebroughtnewapproachesIna2008agreementwidelycriticizedbytheWorldBankandothersChinahasofferedbillionsininfrastructuredevelopmenttoAngolainexchangeforadecadeofexploitationtaxfreemininginthecountry

for example, a new railway linking the Ethiopian capital, Addis Ababa, to Djibouti was largely financed by a commercial loan from the Export-Import Bank of China

Chinese motives, earnings

For China, investment in Africa's infrastructure is a reflection of a decades-old soft power strategy called the "Going Out" policy. The most recent investment in Kenya and Ethiopia is the final chapter, extending President Xi Jinping's Belt and Road initiative, a multi-billion dollar investment strategy focused on transportation and transportation. infrastructure, especially in Eurasia but also in East Africa. China's international investments create export markets for Chinese labor and goods, provide access to natural resources, standardize Chinese technologies and help the world's second largest economy manage $ 3 trillion in foreign assets. The investments also help China reduce risk through a diversified portfolio of projects and complement its increasingly ambitious political and security objectives.

For African countries committed to economic growth and industrialization, China is a willing partner. and facility, said Yunnan Chen, a PhD student at Johns Hopkins University who recently completed fieldwork in West Africa.

African countries to benefit from transfer of skills and technology, job creation

  DOSSIER - Kenyan worker lays gravel at Standard Gauge Railway (SGR) construction site Nairobi, Kenya, 23 June 2018.

FILE – A Kenyan worker grazes on the construction site of Normal Track Railway (SGR) in Nairobi, Kenya, on 23 June 2018. [19659006] Infrastructure projects also provide symbolic benefits, highlighting the independence of self-determination. This is especially true for railway projects, which often replace the lines of the colonial era used to pull resources out of Africa before falling into ruin.

Hidden Risks

Contrary to the foreign investments of the colonial era, the projects supported by China have an intrinsic value for Africa, agree the experts. But these real benefits may mask injustice and corruption, which can lead to agreements that disproportionately benefit China and projects that are not motivated by real demand

China, whose The economy is multiplied by five as all of Africa has signed multi-billion dollar contracts without competitive bidding, raising concerns that African countries have overpaid for projects that could take decades to produce a return on investment.

This is a particular concern with the new line connecting Nairobi and Mombasa. It's one of the last railroads built entirely by Chinese in Africa, but it's not clear that Kenya got a good deal.

In an analysis of alternatives to the project, the African Transport Unit of the World Bank concluded: Beyond the economic aspect, concerns about displacement and environmental damage occupy a place important in discussions of infrastructure projects, particularly railways, which often cross small communities. and wildlife reserves. The Nairobi-Mombasa line, for example, crosses ecologically sensitive areas, said Chen, Johns Hopkins' doctoral student

The Standard one of the largest organizations in the world. Kenyan press concludes: Chinese nationals have created a small kingdom in which they criticize Kenyan workers who claim to experience neo-colonialism, racism and blatant discrimination. "

Kenya Railways opened its own investigation into allegations of abuse soon after

Despite the potential for negative impacts, planning that could help minimize these effects is often insufficient. [19659002] Uwe Wissenbach and Yuan Wang, CARI researchers, determined that "ideally, social and environmental impact assessments should be completed before the project begins to assess and mitigate negative impacts on the local population, but this is often not done or done improperly. "

Without proper planning and control, promises of vocational training and technology transfer may also fail, further diminishing value for African partners . The work that could be done by African workers is sometimes undertaken by the Chinese.