China has been forging closer ties with Africa, a relationship that some see as burdened with debt, while others praise it as increasing Africa's strategic importance globally.
This week's China-Africa Cooperation Forum in Beijing brings benefits for both Africa and China, officials and experts on African affairs say.
Former Ugandan diplomat Simon Mulongo said countries such as Ethiopia, Djibouti and Kenya have received huge amounts of investment from Beijing. And China has been pushing hard to forge partnerships to secure reliable sources of raw materials, as well as forging alliances to gain geopolitical influence and counterbalance Western powers.
“What benefits Africa are basically four things. First, infrastructure development where China has invested heavily in African infrastructure, building roads, railways, ports and other important facilities,” Mulongo said.
“The second is economic growth. Chinese investment has actually created jobs, and stimulated economic activity in various sectors, including manufacturing, mining, and agriculture. The third is financial assistance and loans where China often offers financial assistance with fewer conditions than Western countries. And the fourth is the trade opportunities that Africa benefits from through access to the Chinese market which can increase export earnings especially raw materials and agricultural products.”
Mulongo, who is the managing partner of EMANS Frontiers, a governance and security consultancy, said China also benefits from partnerships with Africa, including through trade opportunities and the wealth of minerals, oil and other natural resources that China needs to fuel its industry and sustain its population.
Africa needs funds
Djibouti is one of the countries where Chinese investment is visible. China not only has a large military base there but is also developing – together with the Djiboutian government – major infrastructure projects including an electric railway, a deep-sea port and a free trade zone.
Ilyas Moussa Dawaleh, Djibouti's Minister of Economy and Finance, said the forum had become a “foundation for long-term collaboration” between the two countries.
“Everyone knows that in Africa we face funding challenges related to major infrastructure development,” said Dawaleh, speaking to VOA’s Horn of Africa from Beijing.
“The infrastructure financing gap in Africa is estimated to be in the billions per year, therefore we greatly appreciate China’s support in narrowing or reducing the infrastructure financing gap,” he said.
When asked whether Chinese loans were a “time bomb” for Africa, Dawaleh disagreed.
He said the debt crisis facing Africa was driven by global challenges including the impact of COVID-19 over the past two years, drought and climate change in the Horn of Africa, the Red Sea and Middle East crises, and “inflation caused by the crises in Ukraine and Russia.”
“We need understanding from partners; and China reiterates that it supports Africa in finding ways and means to handle the debt crisis more gently,” he said. (em/lt)
