https://www.thesouthafrican.com/debt-colonialism
China has just offered Africa another $60 billion for emerging economic developments, but is this a slight of hand aimed at funnelling out the continent’s resources, or is it a sincere gesture of assistance?
South African President, Cyril Ramaphosa, has vehemently denied accusations insinuating Chinese neo-colonialism taking root in Africa. Even Chinese President, Xi Jinping, rebuked the notion of ulterior motives, telling African leaders his country’s investments in the continent have “no political strings attached”.
China in South Africa
This may be so – but the question needs to be asked, what does China hope to gain from these costly investments in Africa?
In August, China pledged R196 billion to South Africa, during the 10th annual BRICS summit which was held in Johannesburg. A portion of these funds is set to assist embattled state-owned enterprises, Eskom and Transnet.
While foreign investment in South Africa is surely appreciated, especially considering Ramaphosa’s target of $100 billion, questions regarding the payback have not gone unnoticed.
Leader of the Democratic Alliance, Mmusi Maimane, has requested the president to disclose conditions on the loan agreement before parliament, saying:
“If the President is confident that the agreement is in the best interest of the South African people, he will surely accede to our request.
It is difficult to imagine that the Chinese Development Bank approved a R33 billion loan to Eskom with no strings attached. Eskom is in dire financial straits and made a R2.3 billion loss in the last financial year.”
Is China practising debt-colonialism?