The project will employ 30,000 Kenyans in the 10000 acre farm and plant. It will produces 10,000 tons of cocoon, 2000 tons of silk and generate projected revenues of $123 million yearly.
Guangdong New South Overseas Investment Holdings (GNSOIH) and Guangdong Silk-Tex Group (Silk-Tex) held a signing ceremony of their cooperation project, China-Africa Modern Silk Industrial Park, Kenya on 20th May, 2019 in Guangzhou. The Chairman and General Manager of both parties attended the ceremony.
The two sides have proposed to jointly fund the trial of mulberry planting and silkworm rearing in Pearl River Special Economic Zone (the first SEZ in Kenya, invested by GNSOIH) and the establishment of China-Africa Modern Silk Industrial Park in Kenya. Following the launching of Pearl River SEZ, this large-scale industrial project is to be introduced by Guangdong New South Overseas Investment Holdings with the initial joint investment reaching RMB 15 million and the estimated investment totaling RMB 1 billion. This Project aims to build a demonstration base and scientific and technological demonstration park of sericulture in Kenya, so as to promote talent training and the application of sericultural techniques. In addition, as part of the pre-feasibility study of China-Africa Modern Silk Industrial Park, this Project will provide not only the data concerning the test, the cost-benefit analysis, and tax policies, but also possible solutions to the problems to be encountered for the future implementation of the major project. The mulberry field is expected to cover an area of 10,000 hectares with an estimated annual production of fresh cocoon of 15,000 tons and raw silk of 2000 tons. This Project will create 33,000 jobs with an annual foreign exchange earning of USD 123 million. With the efforts for building a benchmark for China-Africa cooperation in the silk industry in the new era, this Project will contribute its share in pioneering the new Silk Road linking China and Africa.
Uhuru Kenyatta, President of the Republic of Kenya, expressed his great expectation on this Project after listening to the presentation given by GNSOIH and Silk-Tex Group at the first China International Import Expo held in Shanghai, 2018. He pointed out that the Project is highly complementary to the labor and land resources in Kenya, and its operation can help to build a community of a shared future for China and Africa, and lift local farmers out of poverty. In addition, its operation is of great significance to not only the transformation and upgrading of the local silk industry, but the inheritance of promotion of the silk culture. President Kenyatta also instructed the Ministry of Industry, Trade and Cooperation of Kenya to cooperate with related departments in China in the aspect of establishing an inter-governmental mechanism for cooperation in the silk industry, with the hope of the early implementation of the Project.
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Chairman Zhu Layi of GNSOIH is giving a speech
Zhu Layi, Chairman of Guangdong New South Overseas Investment Holdings, also the President of Guagndong New South Group, the controlling shareholder of GNSOIH introduced the general development of overseas business of NSG. Ten years ago, as a leading enterprise that responds to the “Go Global” Strategy and the “Belt and Road” Initiative proposed by China, NSG set her foot on the African continent. The project of “Fast Elimination of Malaria by Source Eradication (FEMSE)” in multiple African countries has been highly valued and recognized by the Chinese government. In recent year, NSG has been actively promoting China-Africa industrial connection and capacity cooperation, through the operation of Ogun-Guangdong Free Trade Zone (OGFTZ) in Nigeria and Pearl River Special Economic Zone in Kenya. NSG is committed to enabling more Chinese enterprises to realize their “African Dream”. Mr. Zhu expressed his hope for the two sides to work closely to help Africa rise as a green land in the future.
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Chairman Ke Huiqi of Silk-Tex Group is giving a speech
Guangdong Silk-Tex Group Co., Ltd. is a large-scale state-owned enterprise group that is approved by the People’s Government of Guangdong Province, under the direct supervision of the Provincial State-owned Assets Supervision and Administration Commission of Guangdong Province. Silk-Tex Group has established nine silkworm farms and one provincial Sericulture Technology Promotion Center, and is fully responsible for the research and development of sericulture, the development planning and promotion of sericulture, the production and testing of silkworms, and the disease prevention and pest control related to sericulture in Guangdong Province. With the annual production of 1.2 million hybrid silkworms and 60,000 pieces of paper with original silkworm eggs, Silk-Tex occupies 100%, 80%, and 70% of the provincial market in terms of the production and sales of the pre-basic silkworm eggs, the original silkworm eggs, and first-generation hybrid, respectively. Those products are also sold to more than 10 countries and regions in Southeast Asia.
Ke Huiqi, Chairman of Guangdong Silk-Tex Group highly appreciated the NSG’s active participation in the “Belt and Road” Initiative and the efforts for malaria elimination in Africa. Chairman Ke pointed out that the development of silk industry in Kenya is in line with not only the Eight Action Plan proposed in the Beijing summit of the Forum on China-Africa Cooperation, but also the Big 4 Agenda formulated by Kenya. He also suggested that in the future, Silk-Tex will actively promote the “1251” Strategy, that is, focus on one main business of textiles and garments, promote the two layouts of full industrial chain and globalization, and strive to build five major sectors, namely, comprehensive foreign trade services, garment industry supply chain management, cocoon and silk, sericulture health medicine, and silk culture creative park, thus tapping the huge potential of the industry. He pointed out that NSG’s rich development experience in Kenya can provide a strong guarantee for the advancement of the Project, and that the two sides shall implement the project on schedule through cooperation.