China’s “tied aid” strategy particularly benefits Chinese state-owned enterprises with their loans being backed by African natural resources. As a result, China is financing infrastructure projects in Africa while simultaneously promoting the expansion of its own businesses [4].
Djibouti – The “One Belt, One Road” Initiative – Projecting Strategic Interest
In Djibouti -China’s strategic partner- heavy investment is creating one of the largest free trade zones in Africa, to be used as a gateway into the continent. The military base and port denote a visible Chinese presence. Moreover, China is financing infrastructure projects that will connect Djibouti and Ethiopia through amenities such as gas and water pipelines as well as interconnected transportation via an electrified train line. Consequently, China is not only promoting its state-owned business interests but also deepening their footprint in the region [5].
While investment in Djibouti seems to be unattractive as it is one of Africa’s smallest countries with few natural resources, the country is of strategic important because of the maritime route; trading ships head to the Red Sea, the Suez Canal, and Europe [6]. Djibouti therefore lies on the Chinese New Silk Road’s maritime route. China uses development aid to construct schools, hospitals and sports facilities without any loans, and at the same time the military footprint grows. Djibouti now hosts the first Chinese military station outside of Asia and officially provides support for the Chinese fleet [7]. By providing stability for the country and region, China simultaneously supports its economic interest and creates a military ‘base camp’ for activities in East-Africa.
Beijing appears to be the number one partner for Africa; it avoids influencing domestic politics in Africa whilst gaining access to Africa’s resources, markets, and political support for China’s agenda at multilateral forums [8].
Djibouti is a hub for international actors from both Europe and Asia because it connects the Arab and African spheres. With several troops stationed on its soil (French, American, Chinese, German and Spanish), Djibouti will be given closer examination in following articles.
Sources:
[1] African Development Bank, Organisation for Economic Co-operation and Development,
United Nations Development Programme [ADB; OECD; UNDP] (2017): African Economic Outlook,
https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/AEO_2017_Report_Full_English.pdf,
in:
CSIS (2018): Is the United States Prepared for China to be Africa’s Main Business Partner?,
https://www.csis.org/analysis/united-states-prepared-china-be-africas-main-business-partner.
[2] Center for Strategic & International Studies (CSIS) 2018: Is the United States Prepared
for China to be Africa’s Main Business Partner?,
https://www.csis.org/analysis/united-states-prepared-china-be-africas-main-business-partner.
[3] International Center for Trade and Development [ICTSD] (2017): China’s Infrastructure
Development Strategy in Africa: Mutual Gain?, Yabin Wu, Xiao Bai,
Short URL: https://goo.gl/D6b4uS
[4] Brookings (2014): China’s Aid to Africa: Monster or Messiah?, by Yun Sun,
https://www.brookings.edu/opinions/chinas-aid-to-africa-monster-or-messiah/,
retreived 12.02.2018.
[5] Spiegel (2018): Geopolitical Laboratory, How Djibouti Became China's Gateway To Africa,
http://www.spiegel.de/international/world/djibouti-is-becoming-gateway-to-africa-for-china-a-1191441.html.
[6] ibid.
[7] ibid.
[8] Brookings (2014): China’s Aid to Africa: Monster or Messiah?, by Yun Sun,
https://www.brookings.edu/opinions/chinas-aid-to-africa-monster-or-messiah/,
retreived 12.02.2018.
Graphs:
AidData. 2017. Global Chinese Official Finance Dataset, Version 1.0. Retrieved from
http://aiddata.org/data/chinese-global-official-finance-dataset.