China’s inroad in Africa is well documented, and has become a subject of interest across the globe. For many African leaders, China has been more of an economic ally than an enemy. This has raised questions about the US interest in Africa and how it intends to confront China’s fencing of the continent.
Recently, the Vice President of Africa’s most populous country, Nigeria, Prof. Yemi Osinbajo echoed this. He reiterated China’s affirmed economic strong posture in the continent.
Speaking at the prestigious King’s College, London, Monday March 27, Prof. Osinbajo said that the $254 billion investment in Africa by China in 2021 quadruples the volume of trade between the US and Africa. He stated, “China is the largest provider of foreign direct investment, supporting hundreds of thousands of African jobs.”
Nigeria’s Vice President Prof. Osinbajo
Prof. Osinbajo bluntly stated the reality of the situation and why African countries seem unconcerned about the west’s anti-China charge.
In his words, “Most African countries are rightly unapologetic about their close ties with China, China shows up where and when the West will not or are reluctant. And many African countries are of the view that the beware of the Chinese Trojan loans advice from the West is wise, but probably self-serving. Africa needs the loans and the infrastructure. And China offers them. In any case the history of loans from western institutions is not great.
He confirmed Africa’s long history with Bretton Woods Institutions and what many African countries think about loans from the west.
He said, “The memory of the destructive conditionalities of the Bretton Woods loans are still fresh and the debris is everywhere. And the preoccupation of Western Governments and media with the so-called China debt trap, might well be an overreaction. I recommend an eye opening lecture by Professor Deborah Brautigan about two weeks ago at Jesus College Cambridge.”
“The truth, as she points out, is that all of Chinese lending to Africa is only 5% of all outstanding public and publicly guaranteed debt in low and middle income countries, compared to 23% held by the World Bank and other multilaterals. Chinese lenders account for 12 percent of Africa’s private and public external debt. And the Chinese have also been there when the debts cannot be paid. In early 2020 as COVID battered African economies, China came together with other G20 members to launch the Debt Service Suspension initiative (DSSI). Seventy-three low-income economies benefited from the suspension of principal and interest payments. Chinese banks provided 63% of the total debt relief while being only owed 30% of the debt service payments due,” he concluded.
