4.1 Studies included
After an initial search from the database, a total number of 200 articles were retrieved. After meeting the inclusion criteria only 48 ofthese were included in the final writing (See Figure 1).
4.2. The Initiative: A glimpse into China’s Strategy
The original, “Silk Road” was an ancient network of trade routes formally established over 2100 years ago during the Han Dynasty (206 BC-24 AD) to promote trade, peace, cooperation, cultural developments, mutual learning, and benefits essential for increasing developments and prosperity among China, Asia, Africa, and Europe, it spanned over 7000km[22]. Trung et al [23] explained that the vision of the "New Silk Road”, or "One Belt, One Road" (OBOR) is determined to take a major step in leading the trends in globalization in the 21st Century. There are different views from scholars, academicians, and policy analysts about the rationale behind the launch of this initiative. The internal goals of OBORI appear to be in line with the logic of strategic partnership whose goal is to realize the stimulating benefits of regional economic growth and development.
4.3 The Concept of One Belt, One Road
OBOR initiative is a transformational development strategy and policy framework promoted by Chinese authorities to build a sustained Chinese economic growth and development of economies of its strategic partners along the Belt and Road. This definition is in connection with definitions stated by some scholars who weighed it as a development strategy suggested by China to focus on connectivity and economic cooperation amongst Eurasia, Central Asia and East Africa to stimulate sustained economic growth[24, 25]. OBOR is a good international economic strategy intended at accelerating global economic growth and promoting orderly and free flow allocation of resources and deep integration of markets with China as a leader at the hub of its operationalization of the implementation processes [25]. For the issues of market integration demands and needs full association of other national actors in the global economy, therefore, through the OBOR, China will encourage other nations along the belt and road to achieve economic policy coordination and carry out in-depth regional cooperation initiatives of higher standards [24].
4.4 Elements of One Belt, One Road, it's Financing and Implementation.
The OBOR development Initiative comprises two important elements in terms of policy agenda, the Silk Road Economic Belt and the 21st century Maritime Silk Road [26]. (i) “New Silk Road Economic Belt” which is expected to connect central and western parts of China to Central Asia, the Middle East up to Western Europe through the Mediterranean Sea by developing road, railway, ICT and energy infrastructures and strengthening economic interdependence and bilateral relations with strategic partners along the Road. (ii) The New Maritime Silk Road which essentially will connect South China with the South Asia-pacific region, Middle East, African countries (East and South-Eastern and North) through the Indian Ocean and the Red Sea up to Western Europe through the Mediterranean Sea to meet the New silk Economic Road. These two elements are essential and strategic development initiatives that Chinese authorities emphasized would be used by China to integrate itself into the global economy. Many scholars have commented that the initiatives have yielded positive results as, at the time of the review, at least 50 countries had welcomed and supported the strategy.
The positive benefits of OBOR promise to advantage a huge population. Mwatela et al [3] explained that the development initiative wouldintend to benefit about 4.4 billion people in 65 nations with a global population of 63 %, with a GDP of 2.1 trillion US dollars representing 29% of the global GDP[27]. The development strategy promises to develop infrastructure along all the routes it cuts through. The Asian Infrastructure Investment Bank (AIIB) (USD 100 million), China Development Bank (CDB) and Export-Import Bank of China (Exim Bank) = >$1 trillion, China’s foreign exchange reserves = $7 trillion, China’s sovereign wealth fund = $220 billion and the silk road fund with a funding portfolio of USD 40 billion has been established to bankroll all projects under the initiative [1, 28, 29]. From these statistics, one would be justified to expect that the initiative will be beneficial to the countries it is targeting.
Realizing the logic of economic interdependence, China appears to have developed OBORI to connect the supply side of production with the demand side. It looks to have realized that it has to be connected to the markets and sources of raw materials for it to sustain its growth. This initiative, therefore, is seemingly connected to the need to distribute wealth and stimulate global economic development.
4.5 Purpose behind OBORI
Gimba[30] viewed OBORI`s purposes as; i.) Promotion of policy coordination: Focus on promoting regional cooperation to have a common communication system, share interests, and have mutual political trust. ii.) Facilitating linkages: OBOR is dignified at making an efficient infrastructure to link entire Asia, Europe, and Africa in stipulated steps. iii.) Unimpeded trade: Focus on the promotion and improvement of trade correlated issues and integrating the trade areas’ expansion, collaboration as well as the development of modem service trade. iv.) Financial integration: Emphasizes the significance of financial support which is subject to using a stable currency system. This has resulted in the development of the Asian Infrastructure Investment Bank (AIIB), China Development Bank (CDB) and Exim Bank, China’s foreign exchange reserves, China’s sovereign wealth fund, and the Silk Road fund that will strengthen the financial cooperation between its members and partners.v.) People-to-people bonds: Include the provision of support that will be useful in the implementation of the project. Friendly projects promote cultural exchange and mutual learning among many people and warrant them to understand, trust, and respect each other and live in harmony, peace, and prosperity.
Some studies have revealed that the main purpose of developing OBORI is to promote and deepen regional economic integration and cooperation opportunities among partners, opening up maritime-based trade corridors, infrastructure development, and coordinated economic production[3, 31, 32]. Also, they found that OBOR aimed at lessening barricades to trade, both literal (for instance, insufficient port, rail, and road infrastructure) and less tangible (for instance, strengthen trade liberalization and easing customs and quarantine processes), encourage a free flow of allocation of resources and deep integration of markets by developing necessary infrastructure supporting market and regional integration. Takyi-Annan et al [33]contended that OBORI aims at steaming up trade between the People’s Republic of China and other countries due to the overproduction of domestic Chinese products resulting from a drop in their population growth rate, hence the need for new markets. On the other hand, others say OBORI aims at conquering world markets by opening up the markets of emerging and developing economies to handle China's excess production capacity, secure supply of natural resources in partner states, promote the internationalization of China's currency, and to make it part of the foreign reserves. Through strengthened diplomatic relationships with partners, China wants to increase her popularity and to build strategic friendships with partner countries and also counter the economic aspects of the U.S.A‘strategic-pivot to Asia policy’, which include the Trans-Pacific Partnership free trade agreement that seems to discriminate against China.
Various scholars have expressed their views that the aspect of the market and regional incorporation requires joint efforts to open up trade corridors and economic growth, thus it becomes important for global players along the maritime and economic Silk Road to effectively cooperate in the construction of the roads. Leandro et al [34] was concerned with relationships among partners. He said that OBOR has a diversity of partnerships with various players. But the hierarchical classification of these partnerships is difficult to define due to the interpretation complexities of the Chinese language. Over time, the practice has made China change some of the priorities, practices, policies, and protocols governing the partnerships as witnessed in Cabo Verde. The authors warn that no matter what kind of partnerships exist, there is a great need to cautiously manage and maintain these partnerships and principles governing them.
Even though OBORI has been awarded heightened applause as very important in the contribution towards global social-economic growth and poverty alleviation through trade, overseas-investment, connectivityand other development projects in infrastructure, communication, and technological (ICT) developments there have been different suggestions against its real intention[35]. Some scholars have stated that this is a geopolitical strategy intended at controlling the trade sea routes and at the same time a mechanism through which China wants to dominate and control other players in the international system[36].With respect to SINO-Africa trade relations, some scholars, the media, and western countries think that OBOR is an initiative to neo-colonize Africa with the one objective of penetrating its markets, secure and access raw materials for running its economic growth engine[3]. On the contrary, other scholars [32] argue that the initiative is an opportunity to unlock regional integration and trade barriers that have been a fundamental bottleneck to global economic growth. Other studies also reported that some African countries view China as having a positive influence in terms of politics and development of the continent [37].
On the part of mutual respect and trust, mutual benefit, win-win cooperation, mutual learning as well as promoting cultural exchange between civilizations, Ascensão et al [38]observed that there is little evidence that Africa is benefiting on the cultural side as much as China does. They also talked about poor governance and corruption levels in Africa, environmental risks, and challenges along the OBORI route. These include destabilization of regional symbiosis among members of African ecosystems and biodiversity leading to a serious panoply of human health hazards and extinction of treasured flora, fauna, and the so much sought rare earth. Human health will be at stake if the implementation of OBORI doesn’t exhort expert advice from environmentalists. Shahriar et al [39]contended that for a successful implementation of OBOR projects, China needs to extensively involve local communities and take into account all research recommendations from indexed papers. For effective implementation of OBOR in Africa, there is a need for total cooperation, transparency, accountability, and trust between China and Africa to avoid conflict of interest which can hinder the progress of OBOR projects.
4.6 Benefits of OBOR Initiative
4.6.1. OBOR in Africa
Mwatela et al, and Eshpulat[1,3]observed that through the 1978 Deng Xiaoping economic reform and opening-up policy, China has intensified its economic transformation technique by way of transforming an agricultural self-contained state into an international economic powerhouse second only to the United States. He stated that for China to achieve this policy it had been very calculative in designing a global economic strategy to share its economic wealth and benefits of growth to the world. Freidberg[2]contends that the Chinese Government has, therefore, executed a global development initiative that intends at developing infrastructures that connect itself to Central Asia, Middle East, Asia-Pacific, Africa, and Western Europe [2]. This has been achieved through (OBOR) Initiative. Key sectors for OBOR include Energy and power; Infrastructure projects; Public utilities; Construction, transport, and logistics; Technology, media, telecoms and information technology, and Financial markets. Many scholars have observed that within this grand development strategy, Africa has been placed at a strategic position as the Maritime Silk Road reaches out to Western Europe through the continental Red sea. The benefit that exists through this strategy is focused on infrastructure development, market integration, and regional connectivity. Concurring with other scholars,another researcher, observed that infrastructure development is used as a strategy for establishing bilateral relations with Africa,with most Chinese construction firms generally overlooking environmental standards and labour issues during project execution[40]. A McKinsey & Company report calculates that over 10,000 Chinese-owned firms operating in Africa, with about 90% being privately owned[41]. Shrestha [42]found that the OBOR is a vast development initiative to open opportunities to the world especially in Eurasia and in Africa. He added that the significant benefit of OBORI to the world is also regional cooperation. He believed that the OBOR development strategy will change the economic environment in which economies in the region operate, create job opportunities, and enhance people-to-people exchange. Lili, et al [5]contended that this will impact not only Africa and Eurasian regions but the global economy. The threeAfrican countries firstly involved directly in the OBOR development strategy were: Kenya, Djibouti, and Egypt [3, 43]. However, the extent of their involvement is unclear [44]which has attracted many global debates among scholars, academicians, and policy analysts to question possible Chinese hidden intentions for involving these African countries.Many influencing factors have been contributed to the inclusion of these sole three African countries into the centrepiece of China’s twenty-first-century diplomacy. Mwatela et al. and Muhammad et al [3, 44] observed that Djibouti is strategic as it is the entry /exit point of 30% of world shipping into and out of the red sea. On the security issues, the authors noted that provision of security to sea lanes could help to check and control rising incidences of pirates and terrorism which is rising at an expected rate. Kenya is strategically positioned or targeted because it directly connects the trade routes from the interior of Africa to Mombasa port. The authors noted that China wants to use Kenya to establish the starting project of a land bridge connecting East and West Africa. In all this, trade is key for China, so it needed a country with a port and fully aligned with China. Besides, will enable China to respond rapidly to emergencies in North Africa, the Middle East, and South Asia. Lastly, Egypt is key important because it is at the exit of the Nile and entry into the Mediterranean Sea, very important country for the belt to take off well otherwise it may choke off China program. The authors thought of its strategic geographical location at the Suez Canal which provides it an essential status, explaining why it is the only African nation to officially sign bilateral agreements with China on the OBOR. They noted that the Suez Canal is the transit point between the Indian Ocean and the Mediterranean Sea.Mwatela et al[3], also noted that it is true out of 67 nations that are in OBOR development initiative; only 3 countries are covered in Africa representing 4% of the strategy. But the majority of African countries are not officially covered by the initiative and this is challenging considering that most African infrastructure are not yet rehabilitated or constructed. OBOR therefore would provide such an opportunity to construct African infrastructure.
4.6.2. China-Africa Trade Relations
Winter [45]contended that the rise of the Chinese impact on the African continent from 2000 is confirmed by the expansion in trade, investments, and aid. He added that the Sino–African connections date back to the Han dynasty (206 BC to 220 AD), pursuing through the Tung, Song, and Ming dynasties. The expansion in trade between China and Africa was confirmed [22] and noted that trade between China and Africa stood at US$935 million in 1990, and then accelerated to US$55.5 billion in 2000[46, 47]. Other studies reported that from 2001, Africa’s exports to China jump up at an annual rate of over 40% to reach US$28.8 billion in 2006, while in the same year (2006) Africa’s imports from China quadrupled to US$26.7 billion[16].
Theodora [40]argued that trade volume between African countries and China has increased. For instance, Theodora noted that the Malawi-China trade volume jumped from $45 million in 2008 to $100 million in 2012 with more benefits skewed towards Chinese companies. China's Africa Trade amounted to $10 billion and by 2014, it had grown to $220 billion and is now larger than those of the continent with India, France, and the United States combined. The number of Chinese small-scale business traders doing business in Malawi increased from 900 in the year 2000 to 3500 in the year 2013, with most businesses concentrated in textile, tourism, Agriculture, Buildings, and Mining industries [40]. Much as one may argue that this can create employment for local people but realities reveal that it intentionally or unconsciously suffocates infant local industry to find ways of survival in the competitive trade markets. According to estimates from Thomson Reuters and the World Bank the economic ties between China and the African continent have deepened as China’s economy has thrived. China surpassed the United States as Africa’s largest trade partner in 2009. China is a destination for 15% to 16% of sub-Saharan Africa’s exports and the source of 14% to 21% of the region’s imports[48].
The supply side of Chinese production heavily depends on the import of raw materials which mostly are sourced from African and Middle East Countries. The Economic Outlook Report discloses that China surpassed the United States in Africa in terms of trade and investment in 2008 to become Africa’s largest trading partner[14]. For instance, even though African stands around 5% of China's worldwide trade, trade between China-Africa has grown from US$ 1 billion in 1980 and rose to US$ 300 billion in 2016[31]. On the level of African side involvement in OBOR, he reported that it is not clear, and its knowledge is based on Chinese media only. The African ports have been targeted as hubs for transcontinental trade points among Asia, Africa, Europe, and beyond with trade between China and Africa reached a new high of 126.9 billion US dollars in 2010[41]. It also has been recorded that China imports from Africa mainly natural resources like oil (64%), iron ore and metals (24%), food and other agricultural products (5%), the remaining 7% is comprised of finished products[8] while Africa exports only unprocessed raw materials. China represents ¼ of trade for sub-Saharan Africa (SSA) up from 2.3% in 1985, with ⅓ of China’s energy imports coming in from SSA[6].
The bilateral trade imbalance between China and Africa has attracted debates among many scholars and political analysts. Literature reports a high trade imbalance between China and Africa, imports from Africa to China declined by up to 40% while commercial relations shrunk by 18.3% compared to that in 2014. This can be attributed to the maturing and slowing down of the Chinese economy in general. However, other researchers argues thatalso Chinadoes most of its trade business with most African countries that are not in OBORI[8]. The China-Africa bilateral trade pattern (import and export) has been steadily growing for the past 16 years. For instance, the research found that the value of China-Africa trade in 2017 was $155 billion, while in 2018 was $185 billion, an increase of $30 billion[35].
We believe that the development of OBOR would enhance trade bonds between Africa and China thereby lowering the trade imbalance which is presently in favour of China. With China involved in all these infrastructural projects in Africa, “coupled with OBOR” vision for enhancing linkages among countries, the initiative will offer a centralized, clear vision, and concerted effort in streamlining AID. Capital for infrastructural development in Africa comes from various Chinese bank loans under individual bilateral agreements entered into by these countries. Through OBOR, the capital inflow can be centrally monitored through the AIIB and the Silk Road Fund (SRF) [3].
4. 7. Core Projects in Africa under the OBOR Development Initiative
4.7.1. Kenya
The Mombasa Port, the building of a new ultra-modern port in Lamu, building a new standard gauge railway line linking Mombasa port in Kenya has symbolized China’s presence in Africa [3]. Besides, the authors observed that the 2,700 km railway and the pipe is connecting ports in Kenya, to oil fields in South Sudan and Uganda, while also joining with Ethiopia, Rwanda, Burundi facilitating exports for these countries’ products.The projects are being constructed by China Rail and Bridge Corporation and China Communication Construction Company. The projects are funded by China’s Exim Bank as a financier amounting to the US $112 billion.The completion of the first fully electrified cross-border railway line in Africa, linking Ethiopia's capital, Addis Ababa, to the Red Sea port of Djibouti and Kenya's 845 km Mombasa to Nairobi railway.
4.7.2. Egypt
Mwatelaet al[3] observed that one of the projects under the OBOR development initiative is the expansion of the Suez Canal Economic Zone and the building of new administrative capital for Egypt. The project is being constructed by Chinese industrial developer Tianjin Economic-Technological Development Area (TEDA) Investment Co. Ltd. The total cost for expansion of the Suez Canal Economic Zone (SCZone) is estimated at USD 230 million, while for the building of new administrative capital in Egypt is estimated at USD 45 billion. The projects are being funded by Chinese consortium banks. Currently, the project of building a new administrative capital in Egypt has been delayed due to funding while other projects are still in progress.
4.7.3. Djibouti
Mwatelaet al [3]observed that the involvement of Djibouti in OBOR is uncertain as Egypt’s. However, the authors noted that there are 14 megaprojects in Djibouti total cost will be US$9.8 billion. Another project is the construction of a military base at port Dolareh in Djibouti. Both projects are being funded by the Chinese government. The construction of the military base at port Dolareh in Djibouti is estimated at US$ 590 billion, and will mainly be supported by China. The projects have been partly completed.
Although it is officially known that OBOR only strategically targets Djibouti, Kenya, and Egypt in Africa, the Chinese Government has taken initiative to expand OBOR engagement into other Africa countries that are strategically positioned to support the initiative. One such country into which OBOR is expanding is Morocco. Located along the entry into the Mediterranean Sea, this strategic position has motivated China to extend the Belt and Road to this part of Africa. Other projects under OBOR includes the 1780 Km railway line from Tanzania to Zambia, railways have been construction of the railway in Nigeria (1315Km) Kano-Lagos and the 1,302km Bengue railway line in Angola (which brings to a total 4,000km railway in Angola constructed by China), 560km Belinga-Santa Clara railway in Gabon, 172km railway in Libya and 430km rail in Mauritania to name but a few. This is a manifestation that OBOR is not geared towards neo-colonization of Africa but rather redistribution of Chinese wealth through win-win initiatives[32].