Chinese Investment in Infrastructure Anchors Regional Connectivity Stirring Global Growth

From the mountainous Laos to East Africa, Chinese has put the best foot forward in promoting infrastructural development. President Xi Jinping has indicated that China will invest a whopping $ 1 trillion to spur growth and make the world a better place.

Major infrastructural developments in Africa and their impact

On 1st of June, 2017, the Kenyan government and Chinese administration launched the 472 kilometers of standard gauge railway build with funds from China. This has made the focus on Chinese infrastructural capabilities to come to fore as the country seek to enhance better connection and enhancing productivity.

China’s focus on infrastructure has pushed it to the lead as it commits to driving social, economic development. The Nairobi-Mombasa standard gauge railway is the first section of a bigger project that targets linking the biggest port of East Africa (Mombasa) with other countries including Uganda, South Sudan, Rwanda and the Democratic Republic of Congo.

Poor outlook of infrastructure in many African countries has been the leading bottleneck to social economic development. Now, with the first phase of this ambitious project completed, the railway becomes part of other high profile infrastructural projects done by China in Africa. In October 2016, China completed the Ethiopian electrified railway that links the country with the neighboring Djibouti. The railway has cut traffic with over 10 hours.

By the time the Nairobi-Mombasa standard gauge railway was completed, over 42,000 jobs had been generated. The railway is expected to form the core of communication and a unique link with various industrial parks and economic zones. These developments will help Kenya to accelerate towards industrial, social, and economic growth.

Chinese-African ties boosted

Experts are in agreement that the new connectivity is a new economic driver even as uncertainties of economic recovery linger. From Latin America to Africa, railways developments are boosting trade that Road and Belt Initiative targeted to foster faster economic prosperity.

“Think of these developments as part of the building blocks that form a bigger global picture for enhanced connectivity,” argued the Roads and Belt Initiative.

They continued to point that the benefits, in this case, are mutual in a win-win situation that will spur growth over the long term.

Susana Malcorra, the former foreign minister in Argentina, referred to the initiative as a crucial multilateral project that will have the impact to all neighboring countries. The integration is an important step that will support the Latin America’s integration in all areas.

In Latin America, the countries have demonstrated special interest as the Asian Infrastructure Investment Bank indicated t is ready to support related projects. Ultimately, the infrastructure makes all the members (that has risen to six) work cohesively for faster growth.

In his view, Guo Shengxing, the Academy of APEC Creative Finance Dean argues that the Chinese capability in supporting infrastructure is on an upward trend. The capability will likely go unchallenged, and China will no doubt be the undisputed leader. This will benefit not just the immediate recipient of the infrastructure under consideration, but the entire globe.

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