For years, Western media and politicians have accused China of creating a \"debt trap\" in Africa, portraying African countries as victims of predatory lending. However, recent analyses and data challenge this narrative, highlighting a more nuanced and positive relationship between China and Africa.
China and Africa have a longstanding friendship, collaborating on infrastructure development, agriculture, healthcare, and education. These cooperative efforts have significantly contributed to the continent’s growth and development over the past decades.
Contrary to the debt trap theory, African governments are proactive in their engagements with Chinese lenders, aiming to finance their development agendas. The concept of debt traps undermines the agency of African nations and inaccurately suggests poor negotiation practices.
Looking at the data, Africa's external debt stood at $1.12 trillion in 2022, with a debt-to-GNI ratio of 40%, well below the 1994 peak of 77%. Debt levels vary significantly across countries, with nations like Mozambique and Mauritius having higher ratios, while others like Algeria and Botswana maintain much lower levels.
The continent still faces substantial financing needs, particularly for infrastructure projects. Estimates suggest an annual investment gap of up to $402.2 billion to meet development goals by 2030, underscoring the continued importance of international cooperation and investment.
CGTN’s series \"China-Africa Cooperation: Debunking Western Myths\" aims to put these facts front and center, offering a clearer perspective on the beneficial and mutual relationship between China and Africa.
Reference(s):
cgtn.com
