China and the African Union: Infrastructure and Trade Deficits in Strategic Infrastructure in the Horn of Africa

Benedikt Kamski and Nizar Manek
2021, Routledge Handbook on the Horn of Africa (11-pages)

Introduction

Policy makers have recognized regional infrastructure development as a pivot for economic growth and structural transformation in Africa. Adequate transportation, energy, and communication infrastructure is an essential component for successful regional and economic integration. The Programme for Infrastructure Development in Africa (PIDA) was launched against this background in 2012 as the African Union’s (AU) common framework for infrastructure development. However, the African Infrastructure Development Index (AIDI) and Logistic Performance Index (LPI) both provide clear indications for existing infrastructure deficits and how regional trade is affected by limited cross-border transportation links especially across the Horn of Africa.
The nexus between infrastructure and growth has received considerable attention in the academic literature on development and a large body of work has dealt with the importance of infrastructure as a catalyst for peace and poverty reduction in Africa. Considerable literature has been published on the positive effects on trade and economic efficiency stemming from improved transportation infrastructure. Several case studies provide evidence on the ‘symbolic meaning’ and ‘practical effects’ for governments of large-scale physical infrastructure in developing states such as Ethiopia In the literature on the Horn of Africa, Djibouti’s critical geo-strategic position as the core transportation gateway from the Red Sea and an a entrepôt for world powers and the development of hydropower dams in Ethiopia takes a prominent place, while more recent attention has focused on individual projects such as the Lamu Port South Sudan Ethiopia Transport Corridor (LAPSSET) and the Addis Ababa-Djibouti Railway. Moreover, the strategic importance of Africa’s eastern maritime countries for China’s Belt & Road Initiative (BRI) has been explored in several studies and considerable literature has been published on China’s engagement in the construction and transportation sectors in Africa. However, far too little attention has been paid to the overlapping objectives of BRI and PIDA and potential scenarios stemming from the competing priorities of Beijing and the AU in developing strategic transport and maritime infrastructure in the Horn of Africa.
The goal of the present chapter is to provide an overview of major regional infrastructure projects in the Horn of Africa and their politico-economic interlinkages. Focusing on transportation infrastructure, we review existing continental, regional, and national initiatives and policies that guide the planning, financing, and implementation of these large-scale interventions. Besides assessing the state of trans-boundary rail and road links, this chapter pays special attention to the role of seaports and maritime corridors and how the construction of new harbours is likely to affect regional trade and transportation dynamics. The case studies presented in this chapter, constructed from author interviews with ranking officials in Djibouti, Ethiopia, Eritrea, and Somaliland from 2016-19, do not exhaustively consider the large-scale infrastructure projects in the region. We restrict the geographical scope of our analysis mainly to Djibouti and Ethiopia and focus on the transport sector.
The chapter begins describing the background and implementation strategy of PIDA as well as related national and regional development priorities in the Horn of Africa. We then review institutional arrangements of the BRI and the role of the private sector for infrastructure development. While the third section also delves into selected case studies, the final section discusses potential scenarios and challenges related to the expansion of transportation infrastructure across the Horn of Africa.

https://www.taylorfrancis.com/chapters/edit/10.4324/9780429426957-63/china-african-union-benedikt-kamski-nizar-manek