China has been establishing closer cooperation with Africa, a relationship some view as fraught with debt burden while others hail as Africa leveraging its strategic importance globally.
This week’s Forum on China-Africa Cooperation in Beijing carries benefits for both Africa and China, officials and African affairs experts say.
Countries like Ethiopia, Djibouti and Kenya have been on the receiving end of a huge amount of investment from Beijing. And China has been relentless in seeking to secure partnerships for dependable sources of raw materials as well as creating alliances to gain geopolitical influence and counterbalance Western powers. That is the assessment of former Ugandan diplomat Simon Mulongo.
“What is in it for Africa is basically four things: infrastructure development where China has invested heavily in Africa infrastructure, building roads, railways, ports and other essential facilities,” Mulongo said.
“The second is economic growth. The Chinese investments have actually created jobs and stimulated economic activities in various sectors, which includes manufacturing, mining and agriculture. There is also financial aid and loans where China offers financial assistance, often with fewer conditions compared to the Western countries. And the fourth is trade opportunities [in] which Africa benefits from access to the Chinese markets, which can boost export revenues, especially raw materials and agricultural products.”
Mulongo, who is the managing partner of EMANS Frontiers, a governance and security consultant, said China also is benefiting from the partnership with Africa, including through trade opportunities and the rich mineral resources, oil and other natural resources that China needs to fuel its industrial growth and sustain its population.
Djibouti is one of the countries where China investment is visible. China not only has a major military base there but also has developed, together with the Djibouti government, large infrastructure projects, including electrical rail, a deep-sea port and a free-trade zone.
Ilyas Moussa Dawaleh, Djibouti’s minister of economy and finance, said the forum has become the “cornerstone for enduring collaboration” between the two counties.
Financing challenges
“Everybody knows in Africa we are facing financing challenges when it comes to the key infrastructure development,” said Dawaleh, who spoke to VOA’s Horn of Africa Service from Beijing.
“The infrastructure financing gap in Africa is estimated to billions per year. Therefore, we very much value the support of China when it comes to narrow or reduce that gap in infrastructure financing,” he said.
Asked if Chinese loans were a “ticking time bomb” for Africa, Dawaleh said they weren't.
He said the debt crisis Africa is facing is driven by global challenges, including the impact of two years of COVID-19; droughts and climate change in the Horn of Africa; the Red Sea and Middle East crisis; and “inflation imported due to the crisis in Ukraine and Russia.”
“We need the understanding of the partners, and China again confirmed, standing with Africa in order to look at means and ways to deal more softly in the debt crisis,” he said.
Kibur Gena, an economist and the executive director of Initiative Africa, said African countries should exercise a strategic and disciplined approach in managing large loans so that they contribute to sustainable economic development rather than leading to debt distress.
The loans, he said, should be "transparent with clear terms and conditions.”
“They should be definitely used to finance projects that have the potential to generate significant economic returns," he said. Countries should "strengthen their debt management offices to monitor and manage the loans portfolio effectively. I think these are some of the basic points that I would like to raise in terms of managing loans with China, or any other country, for that matter.”
Kibur said balanced partnership is key to China-Africa relations.
“All that requires is a balanced and strategic partnership that prioritizes mutual interest, that prioritizes transparency and scores long-term development,” he said.
Open markets
Kibur said China should also open its markets to a broader range of African products, particularly those with higher value added to support industrialization effort.
Mulongo highlighted the difference between the relations Africa has with China as opposed to Western countries.
“The Western countries often engage and involve aid with conditions related to governance, human rights and economic reforms — a number of African leaders can see these conditions as intrusive,” the former Africa Union deputy special envoy to Somalia said.
“The other one is security-focused. The West usually focuses on security, particularly counterterrorism, peacekeeping and military cooperation,” he added.
Africa should not be forced to choose between China and the West, Mulongo said. Instead, African countries should aim to balance relations with both, leveraging the unique strengths and opportunities that each power presents, he said.
This story originated in VOA's Horn of Africa Service.
