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There seems to be a pitched battle fought between China and Russia on the one hand and the US and other western forces on the other to have a greater grip on African affairs. Western countries including the US warn Africa that greater Russia and China engagement would increase their indebtedness
There seems to be a pitched battle fought between China and Russia on the one hand and the US and other western forces on the other to have a greater grip on African affairs. Western countries including the US warn Africa that greater Russia and China engagement would increase their indebtedness. The US and its allies claim that their partnership with African countries would help them in their development activities, particularly in reducing if not eliminating their debt burden. However, this argument is scotched by China alleging that the debt crisis of Africa caused in the 1990s was squarely due to the interference of the western countries.
The western forces warn that the heavy infrastructure projects being implemented in Africa by China and Russia would considerably enhance their influence in the region. With their engagement in implementing Railway lines and civil infrastructure, China is multiplying gigantic projects in cooperation with African states. One in three major infrastructure projects in Africa is built by Chinese state-owned companies. One in five projects is financed by a Chinese institutional bank. Analysts feel that the Chinese influence in the region has been enhanced considerably by the withdrawal of Western countries from financing projects in Africa, possibly due to the risk factor.
But, according to analysts in the US, that had affected both regions. While the US and western countries have considerably eroded their economic partnership in the region, most African countries were caught in a debt trap due to excessive borrowing from China and other sources. They complain that China offers loans for expensive infrastructure projects and when a country cannot repay its loan, China takes control of its strategic assets. During her recent visit to Senegal, U.S. Treasury Secretary Janet Yellen called on African countries to be careful about tempting deals from China. She said that the loans offered by China are opaque and ultimately fail to help the people they were targeted, adding that many of the poorest states in the region are heading towards over-indebtedness or even default. The UN agencies also voiced concern about the growing indebtedness of the African countries. While China is focussing on infrastructure and strategic investments, Russia seems to be interested in the mining sector.
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Chinese Foreign Minister Qin Gang disputed these charges at a press conference. He highlighted that China has worked hard to help troubled countries and was the main contributor to the G20 debt service suspension initiative. For instance, in Kenya, one of the gigantic projects carried out by China is the railway line linking the city of Mombasa to the Rift Valley. This entails a cost of US$ 5 billion, entirely financed by China. He pointed out that China is Kenya’s second-largest donor, after the World Bank. In the meantime, Tanzania has signed a US$2.2 billion contract with a Chinese company for a rail line linking the country’s main port to its neighbours. Those who are supporting Chinese investments in Africa point out that the debt crisis of the 1990s in Africa was caused by the West and not by China or Russia.
