China is integrating major logistics enterprises to form the Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd., a key transport and logistics link between China and its African trade partners. The Democratic Republic of Congo (DRC) will lead the East African region, with Togo, South Sudan, Sierra Leone, and Madagascar also benefiting from this unified logistics approach.
China : Enhancing trade relations with Africa
Kenya is set to gain from a new Chinese plan to consolidate several major logistics and development companies into a single entity aimed at improving trade relations with Africa. The Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd. was officially launched in Chongqing, China, last week.
Discussions focused on building an integrated global trade platform and mega-logistics centers, all designed to strengthen ties between China and Africa. Companies involved in the mega-logistics conglomerate include Shanghai Greenroad Warehousing and Logistics Group Co., Zhejiang Holley Global Industry Development Ltd., Chongqing Jiangjin Hub Port Industrial Park Operation Group Ltd., and New Land-Sea Corridor Operation Ltd.
This entity will serve as the primary transport and logistics link between China and African trade partners. The mineral-rich DRC leads the East African region, receiving a significant volume of supplies through Kenya’s Port of Mombasa, thanks to its well-connected road network to Kinshasa.
Mega logistics system backed by China to benefit multiple African nations
Additional cargo for the DRC passes through Tanzania’s Port of Dar es Salaam, though this could shift if Kenya’s plans to extend its standard gauge railway (SGR) to the DRC materialize. Recently, the Kenyan government announced its intention to explore public-private partnerships to realize this dream.
Togo, South Sudan, Sierra Leone, and Madagascar are also set to benefit from this joint logistics initiative. « The new entity aims to integrate various stages of the global supply chain and provide a comprehensive service platform connecting global trade and logistics », stated a communiqué from the Chongqing meeting.
In today’s increasingly interconnected global economy, the stability and efficiency of supply chains are crucial for national economic prosperity. The council emphasized that the supply chain conference « not only generated new cooperation ideas within the sector but also strengthened Chongqing and China’s influence in the global supply chain system ».
Moving forward, the China-Africa Business Council plans to implement President Xi Jinping’s connectivity partnership initiative, as outlined in his speech at the FOCAC Summit in Beijing, to foster a fully interconnected China-Africa network.
Trade relations between Africa and China
Trade in intermediate goods between China and Africa grew by 6.4% year-on-year during the first seven months of 2024. Such trade accounts for 68% of the total bilateral trade value and supports Africa’s industrialization and economic diversification efforts.
Between January and July, bilateral trade totaled 1.19 trillion yuan (approximately 166 billion USD). China’s exports to Africa reached 96 billion USD, while imports stood at 67 billion USD, according to customs data.
