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Let's Consider the Political And Economic Impacts of The Deals- African Leaders Urged

China remains Africa’s largest financier of infrastructure.

In 2013, Chinese President Xi Jinping announced plans to build a “Silk Road Economic Belt” and a “21st Century Maritime Silk Road,” now referred to as the “Belt and Road Initiative (BRI).” 

The BRI,  the biggest development initiative in history aims to improve invest-ments, infrastructure, and trade in Africa, Europe, and Asia, to facilitate greater global growth and development. 

In a publication titled 'The Belt And Road Initiative - Opportunities and Risks for Africa connectivity' by four scholars Nancy Muthoni, Alfred Burimaso Wang Bing and Salum Mohammed, strategic location of some countries, such as Kenya, Tanzania,and Somalia (the shore of the Indian Ocean), as well as Egypt and Djibouti(the shore of the Mediterranean Sea), make them natural BRI partners be-cause they connect Africa, Asia, and Europe. In addition, for these countries and many others on the African continent, joining the BRI can help them meet urgent infrastructural needs for their development.

"Chinese infrastructure financing may also help diversify African economies. First, infra-structure advancements could raise the profile of specific countries in Africa, and promote and attract more investment in different economic sectors. Secondly, due to better infrastructure connectivity, increased economic capacity may in-crease domestic productivity and foreign investment, leading to reduced cost of doing business." reads part of the publication.

Adding "Of all the direct and indirect benefits of closer China-Africa cooperation in BRI projects, trade growth and job creation are perhaps the most salient. More trade both intra-continental and international means more jobs for the African economies, which are currently experiencing a very high unemployment level among recent graduates. Providing jobs to these graduates will lead to more social stability and sustainable developemnts.

In an interview with the Oxford University Press academic insights, Professor Wenhua Shan, the Editor-in-Chief of The Chinese Journal of Comparative Law , noted the initiative was proposed with the intention of promoting economic cooperation among countries by enhancing the orderly free-flow of economic factors and the efficient allocation of resources. 

"The ‘Belt and Road’ is not intended to replace existing frameworks of international cooperation. Existing international dispute resolution mechanisms such as commercial and investment treaty arbitration, and the WTO dispute settlement system, will continue to play significant roles. However, new mechanisms and facilities of dispute resolution may be created, and in particular the creation of relevant new platforms at bilateral, regional, or multilateral levels. For example, it has been proposed that a new arbitration centre should be established at Xi’an to help resolve commercial and investment treaty disputes arising out of transactions relevant to the initiative." said Shan.

Adding "It is expected that countries joining the initiative will substantially benefit from it. This has been demonstrated already by the establishment of the Asian Infrastructure Investment Bank and the Silk Road Fund. To a lesser degree countries staying outside of the initiative may also benefit from its spillover effects. Of course ultimately the degree of impact on insider or outsider countries will depend on the degree of success of the initiative."

Among the projects that have been undertaken under the initiative includes construction of ports.

Tanzania is among the countries in East Africa that China is constructing a port.

In June 2021 when Tanzanian President Samia Suluhu Hassan announced that negotiations with China Merchant Holdings for the construction of the Bagomoyo port had been revived. The stalled project was resumed by the newly-elected president five days after a phone call with Chinese President Xi Jinping. 

According to David Mutua, an expert on China - Africa relations, African Presidents need to put into consideration the economic and political effects of the partnerships.

"In as much as we know that China might be having good intentions with our countries but our leaders need not to go to the table empty handed. They have to do their homework and leave no loophole. They have to be careful not to lose their sovereignty since this seems to be also a concern from many quarters" said Mutua.

Adding " when it comes to job opportunities at the construction sites, let most of them go to the locals, they need to benefit directly from these projects, let the Chinese bring expertise."

His sentiments were echoed with Rajab Rashid, a resident of Daresalaam who emphasized on the need for the African governments to ensure that there citizens are the first beneficiaries.

"We need to be very careful to avoid things like exploitations. In as much as we need help but this is our homeland, we have nowhere else, so we should be the first persons to be considered. Most of us live hand to mouth and whenever we see such huge projects we expect to benefit directly."

 

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