New East African Railway Line

by Developed Africa 20. May 2014 09:00

New Chinese investment into railway line in East Africa will increase development in the region.

This new rail project aims to link Mombasa and Nairobi, but in the future it will extend even further to include Burundi, Rwanda, South Sudan, and Uganda. 

China is to finance 90% of the first stage, pit at $3.8bn, with work carried out by a Chinese firm."

It estimated the construction will take 3 and a half years to complete the Mombasa-Nairobi link, with work starting in October. Developed Africa has posted recently on the importance of infrastructure expansion, and transport infrastructure is a key piece in the development puzzle. Once transportation of goods is easier, then costs are cut for businesses, encouraging more development across the continent and between different regions. Not only this, but it allows for public transportation to be quicker and cheaper, which would see an increase in its usage, once again an additional contribution to the economy.

On top of the development that it will bring to the African economy, it is another example of China and Africa's continued close investment relationship. Chinese premier Li Kequiang on the topic of the railway investment has said:

This project demonstrates that there is equal cooperation and mutual benefit between China and the East African countries, and the railway is a very important part of transport infrastructure development."

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