New regional hub will link 11 mega cities in Asia region

China has expanded its
ambitious One Belt One
Road (OBOR) initiative in
recent months to include
Africa.
Regional director for the
Middle East and Africa
at the Hong Kong Trade
Development Council
(HKTDC), Perry Fung,
said while Africa had not
been a part of the economic
transformation plan when
first conceived by the Chinese
President Xi Jinping in 2013,
players on the continent were
now being targeted to be
included in the initiative.
“The OBOR will bring
very real opportunities for
exporters not only in the
Western Cape but the whole
of South Africa,” Fung told
a gathering of the Exporters
Club Western Cape recently.
“This entire initiative is about
creating opportunity.”
He said the plan was
to invest heavily in
infrastructure to allow for
the development of new trade
routes or rather re-establish
the ancient silk
roads between
Asia and the
Middle East.
Fung said
the OBOR
would see the
establishment
of rail, road
and shipping
links with
major markets
in the Middle
East, Asia and Africa. While
there has been concern over
China’s ability to pull off its
plan, Fung said investments
into the initiative were
ongoing and the plan was
gaining momentum in China
and Hong Kong.
“Through OBOR exporters
will be able to connect with
more than 60% of the world’s
population and 35% of its
GDP. That is
the cake that
one is cutting
a slice from.”
He advised
Western Cape
exporters
to keep
abreast of
developments
on the OBOR.
He said
another
initiative worth watching
was the regional economic
expansion plan for
Guangdong, Hong Kong and
Macau. “This will see the
creation of a regional hub
linking 11 mega cities in the
region. The development of
this economic hub is central
in the OBOR plan.”
According to Fung, with
improved accessibility this
is a viable option for South
African exporters looking
for new Asian markets for
their products.
“Another area that offers
real growth opportunity
is the development of the
Xiongan area about 100km
south west of Beijing.
This 2000sq-km city will
operate as a new growth
pole for the country’s
economy, expanding the
boundaries of Beijing,” he
said. “It is a prime market
for exporters from South
Africa.”
INSERT
One Belt One Road
initiative expanded to
include Africa.
– Perry Fung