Quote from Alex bobby on September 5, 2024, 2:26 AM

China-Africa Cooperation: A Strategic Partnership or a Debt Trap?

ADDIS ABABA, ETHIOPIA / WASHINGTON — China's growing presence in Africa has sparked diverse opinions, with some viewing it as a debt trap while others praise Africa's ability to leverage its global strategic importance. This week’s Forum on China-Africa Cooperation (FOCAC) in Beijing highlights the benefits for both China and Africa, according to officials and African affairs experts.

Countries such as Ethiopia, Djibouti, and Kenya have seen significant Chinese investment, as Beijing seeks dependable sources of raw materials and solidifies alliances to counterbalance Western powers. Simon Mulongo, a former Ugandan diplomat, believes China's push for partnerships across Africa is driven by both economic and geopolitical interests.

Mulongo outlined four key benefits for Africa:

1. Infrastructure Development – “China has invested heavily in building roads, railways, ports, and essential facilities across Africa,” Mulongo said.
2. Economic Growth – Chinese investments have created jobs and stimulated various sectors like manufacturing, mining, and agriculture.
3. Financial Aid and Loans – China offers financial assistance with fewer conditions than Western countries.
4. Trade Opportunities – African countries gain access to Chinese markets, boosting export revenues, especially for raw materials and agricultural products.

Mulongo, currently managing partner at EMANS Frontiers, a governance and security consulting firm, emphasized that China also benefits from the partnership, particularly in accessing Africa’s rich natural resources, including minerals, oil, and other essential materials needed to fuel China's industrial growth and meet the demands of its vast population.

China's Visible Impact in Djibouti

Djibouti is a prime example of China’s deepening ties with Africa. In addition to a major military base, China has collaborated with the Djiboutian government on large infrastructure projects, such as an electric railway, a deep-sea port, and a free-trade zone.

Ilyas Moussa Dawaleh, Djibouti’s minister of economy and finance, called the forum the "cornerstone for enduring collaboration" between Djibouti and China. He emphasized the crucial role Chinese financing has played in addressing the infrastructure financing gap in Africa, which is estimated to require billions of dollars annually.

“Everyone knows that Africa faces financing challenges, particularly in key infrastructure development,” Dawaleh said in an interview with VOA’s Horn of Africa Service from Beijing. He highlighted the importance of Chinese support in narrowing this gap.

When asked about concerns that Chinese loans could become a “ticking time bomb” for Africa, Dawaleh rejected this notion. He argued that Africa's debt challenges are driven by global issues, including the economic fallout from two years of COVID-19, climate change, and inflation caused by the ongoing Russia-Ukraine conflict. “China has confirmed its commitment to standing with Africa, helping us navigate the debt crisis more smoothly,” he added.

Navigating Debt Strategically

Kibur Gena, an economist and executive director of Initiative Africa, emphasized that African countries must take a strategic and disciplined approach to managing loans, ensuring they contribute to sustainable development rather than debt distress. He stressed that transparency and clear terms are critical when securing loans from China or any other country.

“These loans should be used to finance projects with the potential to generate significant economic returns,” Kibur said. He also advised African governments to strengthen their debt management offices to effectively monitor and manage their loan portfolios.

Kibur emphasized the importance of maintaining a balanced partnership between China and Africa, one that prioritizes mutual interests and promotes long-term development. “China-Africa relations must be transparent and driven by a strategic vision that supports both sides,” he said.

He also called for China to open its markets to a wider range of African products, particularly those with higher value added, to support Africa's industrialization efforts.

Africa's Unique Relationship with China

Mulongo highlighted the distinct differences between Africa’s relationships with China and the West. Western countries often attach conditions related to governance, human rights, and economic reforms to their aid packages. “Many African leaders view these conditions as intrusive,” Mulongo said. He noted that the West tends to focus on security issues, including counterterrorism, peacekeeping, and military cooperation.

Mulongo argued that Africa should not be forced to choose between China and the West. Instead, African countries should seek to balance relationships with both powers, leveraging the unique strengths and opportunities that each offers. “Africa’s strategic importance means it can benefit from engaging with both sides rather than aligning exclusively with one,” he concluded.

Conclusion

As China deepens its ties with Africa, the debate over whether this relationship is beneficial or burdensome will likely continue. While some see Chinese loans and investments as a solution to Africa's infrastructure needs and economic challenges, others caution against potential debt traps. However, African countries stand to gain if they adopt a strategic, transparent approach to managing loans and foster balanced partnerships that prioritize long-term development. By leveraging the strengths of both China and the West, Africa can position itself as a key player in the global economy.