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Business / View

New Maritime Silk Road to boost ties with Africa

By FRANNIE A. LéAUTIER/MICHAEL SCHAEFER/WEI SHEN (China Daily) Updated: 2015-12-03 07:38

But what will make the 21st Century Maritime Silk Road initiative a success in Africa?

First, the most important precondition for the success of the 21st Century Maritime Silk Road is mutual confidence. Though China's involvement in Africa has benefited from the historical goodwill, it has been subject to growing scrutiny in recent years both in the region and globally. So China has to build mutual confidence with African countries.

Second, Chinese companies need to be better prepared when investing abroad. China's strategy of "going global" has received mixed reception from African partners. This is especially true for large-scale SOEs, which often face difficulties in adjusting to the different political, cultural, financial and legal frameworks in Africa.

Third, since the new Maritime Silk Road is still a project in the making, transparency and coordination between China and African countries are vital.

Fourth, as China also has strategic interests in several African countries, careful coordination will be needed to reduce misunderstandings and internal rivalry in Africa. To ensure effective coordination and transparency it is important to establish a multi-national coordinating body including stakeholders from all participating countries. This approach will help create the necessary degree of transparency and trust which will be essential in engaging with China in the framework of the new Maritime Silk Road.

Fifth, people-to-people exchanges between China and Africa should be strengthened. Historical legacies and goodwill based on experience will gradually fade away. And as the exchange of students is more of a one-way traffic from Africa to China now, Chinese policymakers should encourage more young Chinese people to study in African countries, in order to better understand Africa, its history, languages, religions and societies.

Frannie A. Léautier is chairperson and co-founding partner of Mkoba Private Equity Fund & former vice-president of the World Bank, Michael Schaefer is chairman of the board of BMW Foundation & former German ambassador to China, and Wei Shen is a professor of international business and director of Confucius Institute at Lancaster University & Jean Monnet chair of EU-China relations.

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