President Buhari with L-R: Ambassador of the People's Republic of China to Nigeria H.E. Amb. Cui JIANCHUN, Chair of Authority of ECOWAS Heads of State and Government and President of Guinea Bissau H. E Umaro Sissoco EMBALO, President of Sierra Leone H.E. Julius Maada Bio, President of the ECOWAS Commission H.E. Omar Alieu TOURAY and FCT Minister Muhammad Bello during the Ground Breaking Ceremony of the New Ecowas Headquarters in Abuja on 4th Dec 2022
Debt problem of Nigeria, others, ‘essentially an issue of development’ – China, dismisses ‘debt trap in Africa narrative’
China‘s Foreign Minister, Qin Gang has dismissed as ‘groundless’ allegations that his country has created a debt trap for Nigeria and other African countries through financial commitments which these nations are not expected to meet.
Mr. Gang, who was speaking during a joint press conference with the Chairperson of the African Union (AU), Commission Moussa Faki Mahamat, Thursday, further stated that Africa’s debt problem is essentially an issue of development.
“The so-called China’s ‘debt trap’ in Africa is a narrative trap imposed on China and Africa. Projects and cooperation carried out by China in Africa contributed to Africa’s development and the improvement of people’s lives.
“The African people have the biggest say in this. China will continue to respect the will of the African people, and bring tangible benefits to the African people through China-Africa cooperation based on the realities in Africa, so as to achieve better common development.
“The solution to the problem requires addressing not only the symptoms but also the root causes by means of debt treatment, among others, so as to enhance Africa’s independent and sustainable development capacity,” Gang said.
The minister further noted that though the continent’s countries have in recent years been actively working to promote economic and social development, the lack of funds has become a major bottleneck to Africa’s prosperity and revitalization, and how to balance development financing with debt growth is an issue that all countries must face head-on in the course of pursuing development.
“As good brothers sharing weal and woe, China and Africa have forged ahead side by side on the path of common development.
“China has always been committed to helping Africa ease its debt burden, actively participated in the Group of 20 (G20) Debt Service Suspension Initiative, signed agreements or reached consensuses with 19 African countries on debt relief and suspended the most debt service payments among G20 members.
“China has also been actively engaged in the case-by-case debt treatment for Chad, Ethiopia and Zambia under the G20 Common Framework. President Xi Jinping announced at the Eighth Ministerial Conference of the Forum on China-Africa Cooperation that China would channel to African countries 10 billion U.S. dollars from its share of the International Monetary Fund’s new allocation of Special Drawing Rights, and this work has seen initial progress.
“Relevant reports from the World Bank have shown that multilateral financial institutions and commercial creditors hold nearly three-quarters of Africa’s total external debt. They take a larger share of Africa’s debt, and they can and should take more robust actions to relieve the debt burden on African countries.
“China calls upon all parties concerned to contribute to alleviating Africa’s debt burden in line with the principle of common actions and fair burden-sharing,” the minister said.
According to Gang,China’s financing cooperation with Africa is mainly in fields such as infrastructure development and production capacity, ‘with a view to enhancing Africa’s capacity for independent and sustainable development.’
