China denies creating ‘debt trap’ for African countries

Speaking on a visit to Ethiopia, Foreign Minister Qin Gang says multilateral and commercial creditors carry the biggest responsibility

Qin says Beijing is committed to helping countries alleviate their debt burdens and highlights its role in a G20 initiative to help borrowers

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China’s Foreign Minister Qin Gang and Moussa Faki Mahamat, Chairman of the African Union Commission, tour the headquarters of the African Centre for Disease Control in Addis Ababa. Photo: AFP

Published: 7:30pm, 12 Jan 2023

China has rejected accusations that its loans to African countries have created a “debt trap”, saying multilateral lenders and commercial creditors should carry the biggest blame for Africa’s debt troubles.

Speaking in Ethiopia on Wednesday, on the first stop in a five-nation tour of Africa, Foreign Minister Qin Gang said: “China’s projects and cooperation in Africa have contributed to the development of Africa and the improvement of people’s livelihood.”

He was speaking after a joint briefing with the chairman of the African Union Commission Moussa Faki Mahamat. While in Ethiopia, he also held talks with Prime Minister Abiy Ahmed and will then travel on to Gabon, Angola, Benin and Egypt.

In a thinly veiled swipe at US officials, who have repeatedly said that Chinese lending activities in Africa had burdened countries with loans they cannot repay, Qin said African people have the greatest say on whether China-Africa projects contribute to development of the continent or not.

Through President Xi Jinping’s multibillion-dollar pet project – the Belt and Road Initiative– Chinese lending has funded an infrastructure boom across the continent.

According to the Chinese Loans to Africa Database at Boston University’s Global Development Policy Centre, China pledged US$159.9 billion in loans to Africa between 2000 and 2020 that have gone into building roads, power dams and railways.