China Grants Zero-Tarrif LDC Countries, Including 33 in Africa
Over the course of hundreds of years, the West has left a painful legacy in Africa, marked by enslavement, invasion, and colonialism. Despite this history, the West has never offered African countries the same economic incentives as China. Yet, some in Africa and the West have labelled China as a debt-trap external agent seeking to recolonise Africa through debt. This narrative, born out of fear of China’s rapid and relentless advancement and strong relations with the continent, starkly contrasts the West’s historical actions.
Africa’s loans from the IMF and other Western-controlled institutions come with never-ending provisos and strings. Accept LGBTQ or no loan! Accept human rights as we deem appropriate, or no loan! Do this, do that, and the rates are far worse than China’s. This unfairness in the West’s loan conditions should provoke a sense of indignation. That is not all. For decades, high-interest loans have ensnared African countries, forcing them to pay interest even after repaying the principal loan twice. For example, country A gets $100,000,000 in loans at a 25% interest rate. Most African countries are already impoverished, with corrupt governments syphoning off most of the loans, leaving the countries to continue paying interest for years and even decades. In our example, the initial loan was $100,000,000,000, but the interest after ten years amounts to $200,000,000 million, whereas the initial loan of $100,000.000 remains unpaid. In other words, a lifetime of loan repayment.
Conversely, China loans out $100,000,000 at 8% interest. It puts no restriction on the country and would even offer to construct the projects for which most loans were granted at unprecedented low prices, with many benefits included. China also offers grace periods in case of failing to meet the loan deadlines and provides workable arrangements to avoid burdening the country’s finances. In your opinion, which of the two is a debt trap? The West tarnishes everything China does with negativity, even though the actual harm originates from the West. In the last twenty-five years, China has built more roads in Africa than the West did in four hundred years. It has equipped African households with devices that would have been impossible had Africa relied on the West. A Chinese air conditioner costs two to four times less than its Western counterpart, providing the same service. China has made technology affordable even to the poorest countries. Africa should be thankful to China and value its relations.
Forum China Summit 2024
On Thursday, 5th of September 2024, at the 2024 Summit of the Forum of China, Chinese President Xi Jinping announced in a keynote speech at the opening ceremony that China will grant zero tariffs to LDC (Least Developed Countries) countries with diplomatic relations with China—33 of which are in Africa. It voluntarily and unilaterally opens its market to these countries to facilitate and boost inter-country trade. This will likely incentivise Chinese companies and citizens to order from Africa. It will be as if they were ordering within China. Furthermore, it will also incentivise Chinese companies to want to open production bases in Africa, taking advantage of its competitive advantage to feed the Chinese market. Africa has never received such favourable terms from the West. It is more interested in leaving the continent subservient and underdeveloped.
Chinese children waving the Chinese and Cameroon flags
China also promised $49.8 billion in support for Africa over the next three years. That is more than the EU, US, Canada, Japan, and South Korea gave to Africa within the same three-year period.
Compared to the unnecessary Ukraine war, the US has already allocated or spent $175 billion, the EU has spent €185 billion, and over €100 billion more has been pledged. That is more than the US and the EU have given to Africa in over 250 years, on average. We are not their priority, and we never will be.
As geopolitics shift, Africa is in a strategic position. The Russian-Ukraine conflict has further widened the scope for Africa as the West and Russia vie for allies in the global south. China knows that the West wants it subjugated and relegated. To strengthen, it needs global allies and presence. Africa, the BRICS, and the global south are its best chances. Africa must take advantage of this and get as much as it can whilst it lasts. There are prospects for Africa to benefit from China’s strategic positioning in geopolitics, which should inspire hope for the future. The West is not a reliable partner. It never was, and it likely never will be. Africa has little room to squeeze in because of its government model and obsession with superiority. In contrast, Africa greatly benefits from China’s pursuit of cooperation, expansion, manufacturing, and governmental apparatus. This will continue throughout the 21st century, even into the 22nd.
By Ikechukwu ORJI
