User:Racheltlee/Belt and Road Initiative

Africa

As of April 2020, China's official Belt and Road website lists 42 African countries who have signed onto an agreement or understanding with the One Belt One Road initiative. Africa is considered a key part of China's One Belt One Road efforts, due to its potential for rails, roads, and energy. Many African countries are also in need of better infrastructure, which is still seen as a major barrier to development in the region. In 2018, only 40 percent of Africans had access to electricity, 33 percent had access to paved roads, and 5 percent of agricultural land was irrigated. China began many of its investment activities in the East Africa region, given its access to ports and need for rails and roads, but initiatives have since branched out to numerous projects across the continent. Major road infrastructure projects stretch to south and north Africa, such as Mozambique's Maputo–Katembe bridge and Algeria's Cherchell Ring Expressway Project. Belt and Road projects in Africa focus generally on transport and power but include variation within, from international rail and expressways, seaports, hydropower and carbon-based power, water supply and sanitation, and many other programs.

Subsequently, China's investments in the region have risen significantly since the beginning of 2000, with total spending from the Chinese government and companies reaching $6 billion USD in 2014. A McKinsey & Company report estimates that more than 10,000 Chinese-owned firms operate in Africa, with about 90 percent privately owned. Numerous studies have shown that Chinese investment has had a positive effect on Africa, though growing debt has led to some states slightly pulling back on their plans. According to the Johns Hopkins China Africa Research Initiative, East African countries alone have borrowed more than $29 billion from China for various projects. Some countries like Djibouti, Kenya, and Uganda have issued warnings over the ballooning debt, following the case of the Magampura Mahinda Rajapaksa Port transfer in Sri Lanka.

To build many of the construction projects, China has sent a large number of Chinese workers to developing countries. However, this has become a point of controversy especially in Africa, as high unemployment rates continue to hurt the large young population.

Djibouti

Djibouti, a remote country at the Horn of Africa, is at the heart of China's multibillion-dollar "Belt and Road Initiative", supporting Beijing's juggling of commercial and military objectives amid Western suspicions about its motives. Djibouti's Doraleh Multi-purpose Port, the Hassan Gouled Aptidon International Airport, and Ahmed Dini Admed International Airpot in Obock were built with about $596 million USD in support from China. In total, the Export-Import Bank of China has lent approximately $1 billion USD to Djibouti, funding nearly 40 percent of Djibouti's substantial infrastructure and investment projects. Due to the Belt and Road initiative, Ethiopia and Djibouti are now bridged through the Addis Ababa–Djibouti Railway and Ethiopia-Djibouti Water Pipeline

China's economic relations with Djibouti have extended to increased military involvement in the Horn of Africa region. Among the numerous Djibouti infrastructure projects, China built a military base and has deployed ships from the South Sea Fleet. Djibouti's base could be a sign of China's growing naval presence across the globe. Meanwhile, China has argued that its anti-piracy missions from the Djibouti base has increased its capacity to support One Belt One Road projects.

Egypt

Egypt's New Administrative Capital is a landmark for the Belt and Road Initiative. From 2015-2017, Egypt borrowed $1.03 billion USD from China to finance various infrastructure projects. The same time period brought in around 1,900 workers from China to work on construction.

Nigeria

On 12 January 2019, Nigeria's first standard gauge railway, which has been successfully operated for 900 days, had no major accidents since its inception. With the successful completion of the railway construction by China Civil Engineering Construction Company (CCECC), the Abuja Kaduna train service began commercial operation on 27 July 2016. The Abuja-Kaduna Railway Line is one of the first standard railroad railway modernization projects (SGRMP) in Nigeria. This is the first part of the Lagos-Kano standard metrics project, which will connect the business centres of Nigeria with the economic activity centres of the northwestern part of the country. Nigeria borrowed $500 million for the railway line and will have to repay a fixed interest rate of 2.5%.

Uganda

In Uganda, Chinese companies have financed two major hydroelectricity projects, the Karuma Hydropower Project and Isimba Hydroelectric Power Station. The Export-Import Bank of China granted loans that covered approximately 85% of funding for both projects, while the government of Uganda provided the remaining 15 percent. Uganda also borrowed $350 million to build the Entebbe–Kampala Expressway, the terms of which include 20 years with a 7 years grace period and 2% fixed interest rate.