Africa must shift focus as China’s BRI growth plan in second decade

A decade ago, what began as a dream by Chinese President Xi Jinping has evolved across the globe as a key catalyst for economic growth and development. China hosted the Belt and Road Initiative (BRI) Forum in October this year to celebrate 10 years of existence of this growth plan.

BRI’s objective was to build a global infrastructure and energy network that connects Africa to Asia, Europe and other regions vide roads, railways and maritime routes.

At the onset, critics threw a wet blanket on the initiative which has grown to include infrastructure development projects in over 150 countries. Out of the 54 African countries, 52 have established solid diplomatic ties with China and have either signed or expressed interest to sign the BRI co-operation framework agreements aimed at having a slice of the infrastructural projects on roads, energy, ports and communications.

These projects have opened up African economies to trade and investment by facilitating construction of key domestic and regional infrastructure, access to affordable energy for industries and opened up transportation channels for African exports to international markets.

They have transformed industrial policies leading to high levels of specialisation, consumption, job creation, financialisation and technological innovation similar to those of the highly industrialised countries. Trade routes have emerged between African countries and other regions of the world creating room for increased intra-continental trade.

According to trade statistics from China’s General Administration of Customs, total business between Africa and China surpassed the US$2 trillion mark since the BRI was initiated in 2013. Last year, the trade statistics between China and Africa were recorded as US$282 billion – a growth of 11 percent compared to 2021.

Connectivity created via the upgrading and construction of roads, railways, ports and airports has improved transportation networks significantly. This has cut logistical bottlenecks resulting in lowering shipping costs and facilitation of free movement of goods and services.

This has also reduced barriers to trade by creating trade corridors that connect African countries to global markets. It is these trade corridors that have become essential and affordable arteries for African exports thus playing a pivotal role in making the continent’s exports competitive at the global level.

For instance, the construction of the Standard Gauge Railway (SGR) has greatly reduced the time and cost of transporting goods from the port of Mombasa to other parts of the country and the region.

The SGR has catalysed domestic and foreign tourism by way of an affordable, reliable and flexible mode of transport for tourists to the coastal towns for holidays.

On completion of the BRI projects, African countries must be vigilant, agile and swiftly shift their gears to reap maximum benefits from the BRI-annexed Forum on China–Africa Cooperation (FOCAC) and the China International Import Expo (CIIE) – two key forums that are opening up the Chinese market to imports from Africa.

This should assist in cutting the trade imbalance that exists in favour of China. It is the turning point where hype meets the hustle for African governments.

The writer is an economist, lawyer and commentator on trade and investment.