“China will waive the 23 interest-free loans for 17 African countries that had matured by the end of 2021. We will also continue to increase imports from Africa, support the greater development of Africa’s agricultural and manufacturing sectors, and expand cooperation in emerging industries such as the digital economy, and health, green and low-carbon sectors….
“So far this year, China has signed an exchange of letters with 12 African countries on zero tariffs for 98% of their export items to China. We have provided emergency food assistance to Djibouti, Ethiopia, Somalia, and Eritrea. More African agricultural produce has reached the Chinese market through the green lanes”, Wang Yi for Chinese government. (read more here)
Now, over to US, Russia, EU, etc. Can we get some waivers? Hahaha. Africa surprised the EU/USA by staying largely neutral on the Russia-Ukraine conflict – and that call has made it clear that economic diplomacy works. China wants to take it to another level because you never know when you need some votes in the United Nations. We’re entering a multi-polar world at scale.
Comment on Feedback
Comment 1: Well played China. The only way China can counter western initiatives on the continent is using economic incentives like this. The west is doing alot that are very subtle as well but not on the grand level like China. All the VC pouring into Africa, where do you think the money is coming from? The battle is real for Africa. The west has used education and security and slacked off on the economy and China has dominated that space since. Now to the real issue, this will counter the effort of Africa Continental Free Trade Agreement and slow down the implementation.
For AfCTA to achieve its goals every African state has to believe in it and work its salvation out with fear and trembling for that $3.4T GDP to be achieved. If I am in China’s shoes, I will probably do the same, the new US Sub Sahara Africa Strategy is bold and it needs African nation to work for its dependence through investments. China play is to secure its interest on the continent for resources shipping out of the continent to serve its people. Until China allows Africans to gain the same prominence in China, like Chinese have done in Africa, then there might be a different view of China… The geopolitical game is not for the weak or faith hearted.
Comment 2; Sir, this to me appears as a very big Trojan horse, this offer from China, while on the surface appears to be altruistic comes from a carefully crafted cost-benefit analysis. China must have asked and confirmed that they have far more to gain in directing much needed raw materials to its factories that drag for loan repayment.
Comment 3: It is saddening —or should I say unbelievable —to a country like Angola as one of the most indebted countries, not to talk of Nigeria, to China despite being regarded as one of the world’s fastest-growing economies, and projected to be a developed economy in the nearest future.
What (has) happened along the line? Is it the same problem(curse) of the petrodollar economy heavily bedeviling Nigeria?
Or the menace of maniac corruption by public officials with the help of private businesses?
Comment 4: Yes sir.
My Response 4: “Nevertheless, my utmost concern is whether china with their current own goal style ” – China does not see that as an own-goal. They believe that you cannot allow some people to aggregate all the wealth to themselves. Provided that wealth is not aggregated, it remains spread/available to everyone. Would you prefer one Alibaba to support 500 million savers or 10,000 microfinance to do the same? Would you prefer 10 apps to teach 20 million kids or 10,000 schools to do so? They have different ways they see capitalism and wealth.
China To Waive Matured 23 Interest-Free Loans For 17 African Nations
