Chinese development projects are not to blame for the majority of Africa’s debt according to the Vice Commerce Minister Qian Keming. This is in light of a series of reprovals, especially from the US, which is of the opinion that the Asian country is burdening African nations with unsustainable debt through large infrastructural projects.
For instance, the US Overseas Private Investment Corporation (OPIC) chief executive Ray Washburne warned that the “Belt and Road” initiative launched by President Xi Jinping in 2013 is a debt trap for many poor nations.
“Just look at any project in these countries and they are overbuilding the size. We try to have countries realise that they are indebting themselves to the Chinese,” he observed.
However, China is of a different opinion arguing that “Africa’s debt problems are long-standing and not entirely due to China.” Keming highlighted that the global financial crisis and the decline in commodity prices have amplified Africa’s debt.
“When it comes to the debt problem, there really is not that much Chinese debt in Africa. Overall, according to the statistics that I have, the majority of the debt burden is not necessarily created by China,” he said.
Africa-China Relations
In the past three years, China has invested $3 billion yearly in African projects according to the country’s Ministry of Commerce.
Currently, China is one of Kenya’s major lender, with the trade between the two countries strengthening as the latter continues to finance key infrastructural projects in the East African country.
“China will be unwavering in supporting Africa’s development, including by providing funds, and at the same time we must focus funds on projects that are more sustainable, can advance economic growth, create employment and are economically effective,” stated Keming.
President Uhuru is currently attending the China-Africa Forum on Cooperation Summit, an event that takes place once every three years where China disburses large loans to the continent. The visit could result in another loan package from the Chinese government that could see Kenya’s debt rise even higher than it already is.
“The latest visit by President Kenyatta to Beijing will not only help secure more Chinese funding for key infrastructure projects but also cement Kenya’s position as the focal point of the One Belt One Road Initiative (BRI) in Africa,” State House said in a statement.
