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Home » China Says It Built a Railway in Africa Out of Altruism, But It's More Strategic Than That

China Says It Built a Railway in Africa Out of Altruism, But It's More Strategic Than That

August 14, 2017
Los Angeles Times

Africa's future is the new station a short drive away, a yellow-and-white edifice with grand pilasters, arched windows and a broad flagstone square. It's connected to a $4bn, 470-mile-long rail line, the first electrified cross-border rail system in Africa.

The new rail network was built by China's state-owned rail and construction firms, which were eager to promote their investment in Africa’s future. Red banners running down the towering facade of the new train station declare, in bold Chinese characters, “Long live Sino-African friendship.”

China has described its railroad adventures in Africa as an exercise in altruism.

Yet for China, investing in Ethiopia — one of the world’s poorest countries — is more strategic than philanthropic. With U.S. engagement on the continent at a low ebb, economically and politically, China sees an opportunity to improve transportation through the Horn of Africa and make itself the dominant economic partner on a continent that is about to see an explosion of new cheap labor, cellphone users and urban consumers.

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KEYWORDS Business Strategy Alignment China Global Logistics Global Supply Chain Management Global Trade Management HR & Labor Management Logistics Middle East/Africa Rail & Intermodal Transportation & Distribution Transportation Management
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