China, Africa’s largest bilateral lender, has announced that it is waiving 23 interest-free loans to 17 African countries that had matured by the end of 2021 and pledged to strengthen trade with Africa.
Chinese Foreign Minister Wang Yi made this announcement in an implementation meeting of the Forum on China-Africa Cooperation (FOCAC), according to a press release on the ministry’s website.
The minister did not provide details on the value of the loans to be waived, nor the countries involved, nevertheless, this round of debt forgiveness is in addition to China’s waiver of at least $3.4 billion in interest-free loans to African countries between 2000 and 2019, highlighting China’s commitment to upholding common development in Africa and expanding its cooperation with emerging African countries.
Although China’s lending practices to poor and emerging African countries have attracted criticisms from the western government that China is using “debt-trap diplomacy” in the Global South. According to the World Bank, China bears over 40% of the $35 billion bilateral and private creditors debt the world’s poorest countries will have to service in 2022.
Wang Yi stated that China’s focus is on development cooperation. The Minister highlighted that the country has sped its cooperation on infrastructure and has completed several major projects that have lent a strong boost to Africa’s industrialization process. Some of the projects are the Foundiougne Bridge in Senegal; the Nairobi Expressway; the Kribi-Lolabe Highway in Cameroon; and the 10th of Ramadan LRT in Egypt.
Wang expressed that what Africa would welcome is mutually beneficial cooperation for the greater well-being of the people, not major-country rivalry for geopolitical gains. Emphasizing that China will firmly support African countries in pursuing their development paths and seeking strength through unity.
The Foreign Minister stated that “in the face of the various forms of hegemonic and bullying practices, China and Africa have stood with each other shoulder to shoulder. China appreciates the firm commitment of African countries to the one-China principle and your strong support for China’s efforts to safeguard sovereignty, security, and territorial integrity.”
In strengthening trade with Africa, this year China has signed an exchange of letters with 12 African countries on zero tariffs for 98 percent of their export items to China.
Similarly, in supporting the continent’s agriculture, four China-Africa joint centers for modern agro-technology exchange, demonstration and training were launched. Chinese businesses have increased their investment in Africa’s agricultural sector, growing more grains, helping create jobs, reducing poverty and improving livelihood for the rural households in Africa.
More African agricultural produce has reached the Chinese market through the “green lanes”, an initiative put in place to jack up the China-Africa agriculture trade. Also. the minister said emergency food assistance was provided to Djibouti, Ethiopia, Somalia, and Eritrea.
In addition, China is prepared to re-direct 10 billion US dollars of its SDR to Africa and encourage the IMF to channel China’s contributions to Africa.
