China Waives Interest On Loans Extended To 17 African Countries

China, Africa’s largest bilateral lender, has waived the debt owed by 17 countries in the continent for 23 interest-free loans that were due in 2021, Alexander Onukwue reported to Quartz, an Africa-based online news site.

Photo Insert: Beijing has long been criticized for not providing debt to countries that have been saddled with paying higher interest on loans that eventually benefit China’s state-owned enterprises (SOEs) contracted to build roads, bridges, railways, and other forms of infrastructure.

Beijing has long been criticized for not providing debt to countries that have been saddled with paying higher interest on loans that eventually benefit China’s state-owned enterprises (SOEs) contracted to build roads, bridges, railways, and other forms of infrastructure.

Chinese citizens have been the subject of complaints in many African nations for being arrogant and overbearing and some of them have been killed or assaulted by irate workers.

Nonetheless, Chinese Foreign Minister Wang Yi said Africa must consider China as its preferred long-term development partner, especially “in the face of the various forms of hegemonic and bullying practices.”

The relief was announced on Aug. 18 in an address to Chinese and African diplomats at a follow-up meeting on the Forum on China-Africa Cooperation held last November in Senegal. At that forum, China reduced its pledge to Africa by 33% in an apparent show of concern for Africa’s indebtedness.

Specifics of the announced relief are not known as the beneficiaries and amount were not disclosed. China canceled debt due to interest-free loans worth $113.8 million that matured in 2020 for 15 African countries including Botswana, Burundi, Rwanda, Cameroon, the Democratic Republic of Congo (DRC) and Mozambique.

“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,” Yi said.

He emphasized other points of political agreement between China and Africa, the result being that Africa has received infrastructure and humanitarian investments funded by China, from the Foundiougne Bridge which opened in Senegal this year, and the Nairobi Expressway in Kenya, to emergency food assistance to Djibouti, Ethiopia, Somalia, and Eritrea.

Chinese financiers and African governments signed over 1,180 loan commitments worth $160 billion between 2000 and 2020, the China Africa Research Initiative’s (CARI) database shows, two-thirds being for transport, power, and mining projects. Angola, Zambia, Ethiopia, Kenya, and Cameroon have borrowed the most from China in dollar terms.

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