Debunking the ‘Debt Trap’: Unveiling the True Narrative of China-Africa Cooperation
The term “debt trap” has been frequently used by Western media and politicians to describe China’s lending practices in Africa. However, this characterization may obscure the complexities of China-Africa relations and the transformative impact of their cooperation.
According to the World Bank’s International Debt Statistics in 2022, Africa’s external debt stood at $655.6 billion. Less than 10% of this debt is owed to China’s public lenders, while over 35% is owed to Western banks, asset managers, and oil traders, who often charge twice as much interest on their loans. This raises questions about the fairness of the “debt trap” accusation directed solely at China.
Christopher Mutsvangwa, Secretary for Information and Publicity for Zimbabwe African National Union Patriotic Front, stated, “Western countries are the ones who made Africa every ‘debt trap’… Before, if Africa wanted capital, you would go to Paris. It’s expensive. You try to go to New York, it’s even more expensive. You try to go to London, it’s through the roof.”
Both Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), and David Malpass, former President of the World Bank, have called on the UK and the U.S. to enact legislation preventing private lenders from obstructing debt relief agreements for Africa.
Carlos Lopes, former head of the UN’s Economic Commission for Africa, emphasized, “If we did not have access to the possibilities offered by China, the alternative is worse, not better. We have to stop the China-bashing narrative because it’s really not helpful to Africa.”
China and Africa share a close relationship that dates back to the 1950s. William C. Kirby, T. M. Chang Professor of China Studies at Harvard University, noted, “The Chinese government has had a rather active Africa policy dating to the 1950s and being one of the leaders of the so-called ‘Third World’ at that time… Its development assistance now—not simply as gifts, but as investments—in Africa, in some ways are exporting things that China does better than any place else.”
Since the establishment of the Forum on China-Africa Cooperation in 2000, Chinese investments have contributed significantly to Africa’s infrastructure development. This includes building or upgrading over 10,000 kilometers of railways, nearly 100,000 kilometers of highways, 1,000 bridges, 100 ports, and 66,000 kilometers of power transmission and distribution lines. These projects have created more than 4.5 million jobs across the continent.
Macky Sall, former President of Senegal, highlighted the benefits of Chinese investment: “When you look at the nature of the relationship, it shows that Africans don’t buy into such narrative. In fact, when you look more closely, the Chinese loans, or at least the loans that Senegal has taken from China to build infrastructures, are all at extremely low interest rates… The Thiès-Touba highway expressway, for example, was financed over 20 to 22 years. Yet, only 3.5 years into the loan, the construction was completed and the expressway began operating. So, for about two to three years, we earned revenue before even starting the loan repayment.”
China’s approach focuses on creating real value to support Africa’s development. Branko Milanović, senior scholar at the Stone Center on Socio-Economic Inequality at the City University of New York Graduate Center, observed, “What I like about the Chinese approach is that it often thinks about the grander scale of things. So, we don’t simply do small projects; we’re actually trying to think of projects that would have a huge advantage in bringing market economy production to large parts of the world.”
Hannah Ryder, CEO of Development Reimagined, pointed out that the World Bank has not funded an independent new rail project in Africa since 2002. In 2023, American organizations funded only three infrastructure projects, while Chinese organizations funded nine. “We cannot distinguish China’s role from the gap it is filling in a multilateral system that does not meet our needs,” said Ryder.
The “debt trap” narrative may be a distraction from the tangible progress being made through China-Africa cooperation. By focusing on infrastructure and development projects, China is contributing to Africa’s growth and enabling countries to achieve their own economic objectives.
Accusations of debt trapping overlook the mutual benefits and shared goals of China and African nations. As both parties continue to collaborate on large-scale projects, the emphasis remains on fostering sustainable development and building a partnership based on respect and common interests.
