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What China’s ‘One Belt, One Road’ plan could mean for Africa

15th January 2016

By: Anine Kilian

Contributing Editor Online

  

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Since the new Chinese government came to power in 2013, it has proposed a host of new strategies to realise the “Chinese Dream”, says ENS Africa China practice group head Kenny Chiu.

One of the more significant strategies, led by Chinese President Xi Jinping, is known as the “One Belt, One Road” plan, which will have an undeniable impact on the global economy over the next ten years, he states.

“The One Belt, One Road strategy aims to provide a comprehensive roadmap for a partnership between China and the rest of the world. Businesses are emphasised as the main components of the development of this new strategy, and China, Asia, Africa and Europe are the main theatres in which this strategy aims to play out,” he says.

He notes that global cooperation and interaction act as the foundation for the plan and, if the strategy can achieve its desired effect, it will reshuffle the deck of cards that is the global economy.

The Chinese Communist Party and government have stated that the strategy is not only a means for China to perform in the global economy, but is also a symphony between it and partnering countries.

“This is a clear indication that no single country can succeed if it is a soloist in the One Belt, One Road strategy. As such, as it currently stands, the strategy is not simple and requires a lot of commitment to make it a success. It also comes with its own set of opportunities and unique challenges.”

Chiu points out that according to the concept of the One Belt, One Road strategy, Africa will be one of the main sites of focus. However, he notes that many sub-Saharan countries have some of the slowest growth rates in the world, and many are politically unstable and lacking in social governance, which bring a lot of uncertainty to the strategy.

As part of their cooperation, Chinese and African businesses must acknowledge that they will face unprecedented challenges, in addition to opportunities.

“Under the One Belt, One Road framework, China will need to become the engine that drives the global economy. Being the second largest economy in the world, China has already surpassed the United States and is growing stronger daily,” he says, adding that in the foreseeable future, China will still play a leading role in the global economy, which will enable it to provide a huge financial platform to ensure that the One Belt, One Road strategy is realised.

He cites that the growth of the Chinese economy will also bring about the necessary finance, technical skills, equipment, innovation and human capital and, as such, will present many profitable opportunities.

“Secondly, under the auspices of peace and development, the cooperation and interaction between nations will become the new norm and will bring about immense rewards, such as the amalgamation of resources, the utilisation and training of personnel, growth of existing markets, investment, and the speedy development of infrastructure.”

There are many commercial opportunities that Chinese and African businesses should seize with both hands. Africa remains the last untapped opportunity, particularly Southern and East Africa and, although both areas are starting behind many countries, they have huge market potential that should not be underestimated.

Chiu believes the One Belt, One Road strategy will certainly reinvigorate East and Southern Africa and will create a new source of motivation. Chinese and African businesses must recognise this possibility and utilise opportunities as they present themselves.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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