Share

China is not trapping Africa in debt: foreign minister

accreditation
0:00
play article
Subscribers can listen to this article
Chinese Foreign Minister Wang Yi speaks at the Lanting Forum on China-US relations in Beijing.
Chinese Foreign Minister Wang Yi speaks at the Lanting Forum on China-US relations in Beijing.
Greg Baker, AFP
  • China's Foreign Minister Wang Yi has dismissed suggestions that China was luring African countries into debt traps by offering them massive loans.
  • China is Africa's largest trading partner, with direct trade worth over $200 billion in 2019, according to official Chinese figures.
  • Wang is currently on a three-nation tour of Eritrea, Kenya and the Comoros.


China's Foreign Minister Wang Yi on Thursday rejected suggestions that Beijing was luring African countries into debt traps by offering them massive loans, dismissing the idea as a "narrative" pushed by opponents to poverty reduction.

Wang, speaking ahead of touring Beijing-funded infrastructure projects in Kenya, said China's considerable lending to Africa was "mutually benefiting" and not a strategy to extract diplomatic and commercial concessions.

"That is simply not a fact. It is speculation being played out by some with ulterior motives," he told reporters in the Kenyan port city of Mombasa.

"This is a narrative that has been created by those who do not want to see development in Africa. If there is any trap, it is about poverty and underdevelopment," he said, speaking through an interpreter.

Wang's three-nation tour of Eritrea, Kenya and the Comoros follows a trip to Africa by US Secretary of State Antony Blinken in November that in part aimed at countering China's growing influence on the continent.

China is Africa's largest trading partner, with direct trade worth over $200 billion (177 billion euros) in 2019, according to official Chinese figures.

China is Kenya's second-largest lender after the World Bank and has funded a number of costly infrastructure projects that have raised concerns about Nairobi taking on more debt than it can afford.

In Mombasa, Wang held a closed-door meeting with a team of government ministers and signed agreements on trade and investment, health, security, climate change and green technology transfer.

He later met President Uhuru Kenyatta and visited the Port of Mombasa, where China is constructing a new $353 million terminal to allow larger oil tankers to berth.

"The visit is a testament to the deepening of relations between the two countries," said Kenya's foreign minister, Raychelle Omamo.

Debt fears

Beijing funded Kenya's most expensive infrastructure project since independence, loaning $5 billion for the construction of a railway line from Mombasa opened in 2017.

During a visit to Mombasa in January 2020, Wang described the railway as a "benchmark" of China's Belt and Road Initiative, a trillion-dollar push to improve trade links across the globe by building landmark infrastructure.

But observers have raised red flags over Kenya's reliance on Chinese funding, warning that debt was soaring to unmanageable levels.

Aly-Khan Satchu, a Kenyan geopolitical and economic analyst, said the East African nation was at a disadvantage negotiating deals and often stuck with high-interest repayments.

"These investments are not going to make a return on investments for the foreseeable future," he told AFP.

"You have taken out these loans and they are making losses every month. You are essentially increasing the problems."

Asked about Wang's trip, State Department spokesman Ned Price said that the United States was committed to "sustained and transparent collaboration" with Africans and was not asking nations to choose between the United States and China.

"The type of partnership that the United States offers to the countries of Africa -- these are partnerships that are based on mutual opportunity, mutual respect," Price said.

Beijing's lending spree has slowed in recent years as borrowers have pushed back on terms and the coronavirus pandemic has inflicted economic pain.

Satchu said China was shifting focus from infrastructure to greater trade, and saw promise in deepening ties with Indian Ocean economies.

"The Chinese are trying to recalibrate their relationship with Africa, with a lot of emphasis on agriculture and lending to the private sector," he said.

Wang has already visited Eritrea and after Kenya, heads to the Indian Ocean island nation of the Comoros.

Did you know you can listen to articles? Subscribe to News24 for access to this exciting feature and more.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Should the Proteas pick Faf du Plessis for the T20 World Cup in West Indies and the United States in June?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes! Faf still has a lot to give ...
67% - 1008 votes
No! It's time to move on ...
33% - 489 votes
Vote
Rand - Dollar
18.76
+1.4%
Rand - Pound
23.43
+0.3%
Rand - Euro
20.08
+0.2%
Rand - Aus dollar
12.25
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
924.10
-0.0%
Palladium
959.00
+0.1%
Gold
2,337.68
0.0%
Silver
27.19
-0.0%
Brent Crude
89.50
+0.6%
Top 40
69,358
+1.3%
All Share
75,371
+1.4%
Resource 10
62,363
+0.4%
Industrial 25
103,903
+1.3%
Financial 15
16,161
+2.2%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE