Ruto to return from China with billions for mega projects

President William Ruto and his Chinese counterpart Xi Jinping during the high-level meeting on the Belt and Road Initiative that he co-chaired at the Forum on China-Africa Cooperation Summit in Beijing. [PCS]

After a week-long trip to Beijing, China, President William Ruto is expected back in the country this weekend with bags of goodies worth billions of shillings, aimed at expanding economic opportunities.

The support comes in the wake of accruing international debt.

The President and his delegation have this week engaged several groups and individuals, including his China counterpart Xi Jinping in sealing deals expected to benefit various sectors of the economy.

President Xi Jinping Thursday announced a 10-point partnership action plan for Africa for the next three, which will provide Africa with $50 billion (Sh6.5 trillion) of financial support.

The action plan will cover modernisation of industrialisation, agriculture, trade, investment, training, and infrastructure.

Others are access for Africa's goods to the Chinese market, 30 infrastructure connectivity projects and development cooperation comprising 1,000 livelihood projects.

"In the next three years, China will work with Africa to take 10 partnership actions for modernisation to deepen China-Africa cooperation and spearhead Global South modernisation," he said.

The President, who made the remarks when he opened the 9th Forum on China-Africa Cooperation (FOCAC) summit in Beijing, said it will include a $29.4 billion credit line, $11.2 billion of various forms of assistance and at least $9.8 billion of investment in Africa by Chinese companies.
China will also support Africa in issuing Panda Bonds in China to enhance results-oriented cooperation.

Ruto, who has been attending the summit which ends today, said the meeting presented an opportunity for Africa to renew and strengthen its partnership with China.

“Over the years, China has proven to be a true development partner, significantly revamping our infrastructure. We look forward to leveraging these ties to accelerate our transformation,” Ruto said upon his arrival in China on Monday.

He said cordial diplomatic relations between the two countries have gone a long way in transforming railway, road and port infrastructure including Mombasa-Naivasha Standard Gauge Railway (SGR), Nairobi Expressway and many rural roads.

“Held talks with President Xi Jinping at the Great Hall of the People in Beijing, China, ahead of FOCAC summit. During the meeting, President Xi agreed to give Kenya's agricultural produce access to the Chinese market. We also agreed to discuss regional infrastructure projects such as the expansion of SGR, and the Rironi-Mau Summit-Malaba dual carriageway,” Ruto said after meeting Xi on Tuesday.

Also during his trip, the President announced a key venture saying that Kenya had formally joined the Asian Infrastructure Investment Bank (AIIB) as a fully paid member.

He explained that the membership will enable Kenya access concessional funding for infrastructure, climate change efforts, connectivity, regional cooperation and technology-enabled projects and programmes.

Ruto met with AIIB President and Board of Directors Chairman Jin Liqun and other officials at the bank's headquarters China, which is a multilateral development institution with 109 members and $100 billion capitalization.

The President also held talks with talks with the leadership of the China Communications Construction Company led by Chairman Wang Tongzhou and discussed various projects like the Rironi-Mau Summit-Malaba dual carriageway, Galana-Kulalu irrigation project, Bomas International Conference Centre and the expansion of the SGR into the region.

“The huge infrastructure demand in Africa calls for stronger collaboration with the private sector to unlock the continent's potential in mineral resources, renewable energy and agriculture. In Kenya, we have established a robust institutional framework supported by incentives and a return on investment,” Ruto stated.

He welcomed the promise of Belt and Road Initiative (BRI) to transform Africa through road, rail and air connectivity and other infrastructure, thereby unlocking the potential for intra-Africa trade from its present low level of 15 per cent.

“We are engaging China on extending the SGR from Kenya, through Uganda, Rwanda, Burundi and Democratic Republic of Congo, into Congo Brazzaville thereby linking the Indian Ocean to the Atlantic Ocean,” said Ruto.

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