Africa-Press – Sierra-Leone. China is responsible for only about 12 percent of Africa’s total external debt, which is estimated at $700Bln, according to international affairs think tank Chatham House in London.
China’s Foreign Minister Qin Gang, during a visit to the African Union Headquarters in Addis Ababa, Ethiopia, rejected allegations that a “Chinese debt trap” was developing in Africa.
Qin, who is on a week-long visit to the African continent on his first overseas trip as foreign minister, stressed that the so-called “debt trap” is a false narrative imposed on the relationship between China and African nations, arguing that the African people are the only ones to judge the cooperation which exists between China and Africa.
The minister pointed out that Chinese-African financial cooperation is mainly related to infrastructure construction and manufacturing. It aims to build the capacity needed for Africa’s self-sustaining development.
According to the Chinese Foreign Minister, projects in which China is participating contribute to the welfare of African countries. He noted that the problem of their outstanding loans should be solved not so much through debt settlement mechanisms, but by stimulating the economic and social development of these states.
Qin also said that Beijing has already reached agreements with 19 African countries on debt relief. He said that approximately 75 percent of Africa’s total external debt is related to multilateral financial institutions and commercial creditors, calling on “all parties concerned” to help reduce the pressure that African countries are experiencing because of the existing debt.
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