Development of African Railroads Is for Enhancement of Pan-African Trade, Writes China’s

China’s investments in the African railroads are designed to enhance the weak pan-African trade, says Global Times. “According to the African Export Import Bank, intra-African trade was only about 19% of the continent’s $930 billion traded last year. The rest was shipped out of the continent despite availability of mar- kets across Africa. This is despite the fact that there are 14 trade blocks in Africa designed to facilitate greater cross-border trade and intra-African economic co- operation,” wrote the daily’s Joyce Chimbi. “The main challenge that Africa has faced in its bid to boost pan-African socio-economic co-operation is poor, and in some instances, a complete lack of connectivity. There is therefore a great need for African countries to prioritize infrastructure development, since this will provide the continent with the foundation it needs to support all sectors of the economy.”

On June 14, {Global Construction Review} reported the formation of a consor- tium made up of Mota-Engil of Portugal and the China National Coplete Engineering Corp., to build a 500 km railway in Mozambique. “The $ 1.4 billionscheme will connect the Moatize coal mining area near the Malawi border with the port of Macuse, report Macauhub. The consortium, which is equally divided between the two companies, was picked by the client for the project, Thai Moçambique Logística (TML) out of a shortlist of seven,” {GCR} reported.{GCR} also wrote that that given the high level of goods and services coming from China, “it is very likely that Chinese export credit could provide the necessary financial backing.” The project is expected to begin in 2018 and take 44 months to complete. “However, that schedule may get longer if it is decided to extend the railway a further 120km in order to connect to more coal deposits.”

Global Times (China)

 

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Posted by on Jul 12 2017. Filed under African News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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