CHINA, JAPAN, INDIA AND THE EAST AFRICA BLUE ECONOMY
Summary
The document analyzes the engagement of China, Japan, and India in East Africa, particularly Kenya and Tanzania, highlighting the strategic importance of maritime ports and transport corridors. It details significant infrastructure projects, such as the LAPSSET Corridor and the Mombasa port upgrades, while noting a persistent trade imbalance where East African nations export raw materials and import high-value finished goods. The author argues that while these investments offer growth opportunities, they require improved governance to ensure sustainable and inclusive development.
Key insights
- Kenya and Tanzania serve as critical maritime gateways for landlocked countries; Mombasa links the eastern DRC, Rwanda, Burundi, and Uganda via the Northern Corridor, while Dar es Salaam anchors the Central Corridor connecting the eastern DRC, Rwanda, and Burundi.
- China has invested heavily in Kenyan infrastructure, including a $4 billion railway connecting Mombasa and Nairobi completed in May 2017, and the $25.5 billion LAPSSET Corridor, which includes a $3.5 billion deep-water port at Lamu expected to operate in 2020.
- Japan has focused on strategic port upgrades in Kenya, providing a $340 million loan for Phase II of the Mombasa port renovations to increase container capacity by over one million TEUs across three phases.
- Chinese investment in Tanzania includes a $10 billion project for a new port at Bagamoyo and a linked special economic zone, as well as $9 billion in railway contracts, including a $7.6 billion standard gauge railway from Dar es Salaam to land-locked neighbors.
- Indian foreign direct investment (FDI) in the East African Community is substantially lower than that of China and Japan; between 1996 and 2017, the region received only 0.5% of India's total FDI outflow to Africa.
- There are significant bilateral trade imbalances between Kenya, Tanzania, and their Asian partners, as the East African nations primarily export raw materials while importing high-value finished products or refined petroleum.
Cite the original document
- APA
- BUYS, A. (2018). CHINA, JAPAN, INDIA AND THE EAST AFRICA BLUE ECONOMY. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/08/Policy-Insights-61.pdf
- Chicago
- BUYS, AIDAN. CHINA, JAPAN, INDIA AND THE EAST AFRICA BLUE ECONOMY. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/08/Policy-Insights-61.pdf.
- Wikipedia
- {{cite report |last1=BUYS |first1=AIDAN |title=CHINA, JAPAN, INDIA AND THE EAST AFRICA BLUE ECONOMY |publisher=South African Institute of International Affairs |date=July 2018 |url=https://saiia.org.za/wp-content/uploads/2018/08/Policy-Insights-61.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{buys2018china, author = {BUYS, AIDAN}, title = {{CHINA, JAPAN, INDIA AND THE EAST AFRICA BLUE ECONOMY}}, institution = {South African Institute of International Affairs}, year = {2018}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2018/08/Policy-Insights-61.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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