Zimbabwe received a glimmer of hope this week as China agreed to forgive an undisclosed amount of the country’s interest-free loans. The move comes as Zimbabwe grapples with a crippling debt burden of $17.7 billion, with the majority owed to China.
“China attaches great importance to resolving Zimbabwe’s debt issues,” said China’s ambassador to Harare, Zhou Ding. This pledge follows years of struggle for Zimbabwe, which has been ineligible for loans from institutions like the World Bank due to previous defaults.
However, some experts view China’s action with skepticism. They worry it could be a tactic to create a “debt trap,” giving China political leverage in Africa as it competes with the United States for influence. China has consistently denied such accusations, claiming its relations with African nations are built on non-interference.
Zimbabwe’s economic woes extend far beyond debt. The country is currently battling a devastating drought and recently relaunched its currency for the third time in a decade, a move intended to curb hyperinflation but one that has left many citizens struggling to afford basic necessities.