China, the world’s second-largest economy and the largest government lender to growing economies announced plans to cancel 23 interest-free loans for 17 African countries.
Wang Yi, the Chinese Foreign Minister announced the cancellation in a meeting held with leaders from various African countries last week.
According to the minister, China will also redirect its $10 billion reserves with the International Monetary Fund (IMF) to Africa to better support nations in the region and strengthen its collaborative effort on the continent.
However, he did not provide details of the loan amount, said to have matured at the end of 2021, nor did he mention the indebted African countries.
While Beijing has a consistent pattern of dissolving loans like this, western governments have made unfounded, politically inspired allegations that China utilizes “Debt – trap diplomacy” worldwide.
In the meeting, the Foreign Minister criticized the West’s “all or nothing Cold War mentality.” He alternatively suggested a model focused on “multi-party collaboration” with Africa that produces “win-win results” for everyone.
Wang Yi said, “What Africa would welcome is mutually beneficial cooperation for the greater well-being of the people, not major-country rivalry for geopolitical gains.”
Beijing, which immediately promised to deepen trade with Africa, made a consensus with twelve African countries to cut tariffs on products they export to China by 98%.
“Beijing will continue to provide food, economic and military aid to Africa while offering assistance in the battle against Covid-19.
“With an emphasis on the importance of cooperative de development, China has offered billions of dollars of investment in infrastructural projects as a major push to Africa’s Industrialization operations.
“Africa plays an important role in Beijing’s Belt and Road Initiative, a global infrastructure project aimed at interconnecting the Global South and moving the center of the world economy back east.
“In the face of the various forms of hegemonic and bullying practices, China and Africa have stood with each other shoulder to shoulder,” Wang emphasized, calling to “safeguard international fairness and justice.”