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Big game and even bigger projects in Africa

By John Defterios | China Daily Europe | Updated: 2017-05-12 08:50
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China's presence is everywhere to be seen as huge infrastructure projects provide the links the continent needs

After living with my family in the United Arab Emirates for six years, it was high time to take advantage of the reach of Gulf airlines and pursue an African safari.

Our goal was a simple one, to see the "Big Five" - lions, buffalo, leopards, rhinos and elephants. The destinations were two of Kenya's natural treasures: the Masai Mara National Reserve and Lake Nakuru, in the heart of the sprawling Rift Valley.

Our journey, thanks in large part to our highly knowledgeable guide, was a success. We spotted all five animals at both locations and took in more than one could imagine when it comes to other animals, birds and plants.

While I certainly enjoyed what Mother Nature had to offer, I also witnessed firsthand what I had only read about before - China's presence in Africa, especially in Kenya.

On the road to Lake Nakuru, two hours out of Nairobi, one could not miss the railway and road construction work being conducted by the China Road and Bridge Corporation.

Most of that work is linked to the first section of a near $3.27 billion railway project to be completed this year, going from Mombasa on the east coast to the capital Nairobi, with an extension planned to the market town of Naivasha.

Back in late 2013, Kenya's President Uhuru Kenyatta declared that this project would define his legacy, promising to transform not only his country "but the whole eastern Africa region". Voters will have their say this summer as they go to the polls in what may shape up to be a divisive election, with locals hoping to avoid a repeat of the violence which broke out a decade ago.

The big picture taking shape is an impressive one, if all can be delivered. The Standard Gauge Railway, meant to handle much larger cargoes, will shorten the journey between Mombasa and Nairobi by half from eight hours to just four. When complete, the East Africa Railway will include Uganda and South Sudan. Road arteries are also being created between those cities.

At the tail end of our one-week journey I passed two expansive dry ports, poised to handle goods from Kenya's farm belt. I was told construction is set to begin on transforming what is the now an unpaved 60 kilometer stretch of road leading up to Masai Mara.

There had been an infrastructure spending deficit in Africa. According to consultancy Deloitte, that has changed, with more than $130 billion spent on transportation infrastructure last year and another $200 billion anticipated between now and 2025.

Having recently spent nearly a month in China, one can see how Beijing's work in Africa ties into the Belt and Road initiative, driven by the recently-established Asian Infrastructure Investment Bank. With targeted working capital of $100 billion, the AIIB will help 66 countries build up their infrastructure.

"For China, looking to reduce its trade dependence on the West, these regions are key to furthering its objectives. With Chinese investment leading the way, they will see vast development over the next two decades," says Kenneth Courtis, chairman of Starfort Investments and former chairman of Goldman Sachs Asia.

Courtis adds that China is establishing key hubs for commerce. The UAE is one and Kenya is another. He cites a long list of attributes for the latter, including its port, strong manufacturing and agricultural sectors with room to grow and high literacy rates.

Western policies were a key driver for Kenya to rethink its alliances, after years of what businessmen described as finger wagging by the US and Europe on issues ranging from human rights to corruption. Beijing makes it a practice to stay out of domestic politics, is flush with $3 trillion of surplus capital and has China's Export-Import Bank at the ready to lend funds.

To that end, China has committed to invest $60 billion and that was reinforced by President Xi Jinping at the end of 2015 when he outlined 10 China-Africa investment plans.

The writer is CNN Money Emerging Markets Editor. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 05/12/2017 page13)

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