Page 5 - AfrElec Week 38 2021

AfrElec COMMENTARY AfrElec

Chinese investment in

Africa rises in 2021

CHINESE investment in Africa rose to $2.96bn Africa’s creditor landscape has been increasing,
AFRICA in 2020, despite the impact of global pandemic by far the most important being China. Many
on economies. of these loans are not transparent regarding
China’s consul-general in Lagos, By Chu loan terms and collateralisation,” the AfDB said,
Maoming, said in a statement given to Nigerian stressing that “most of the countries currently
media that “China-Africa economic relations in debt distress or classified as being at high risk
continue to thrive during the pandemic.” of debt distress have high exposure to Chinese
“Facts and figures show that investment loans.”
co-operation is a strong engine for the qualitative However, Beijing says it is confident that its
upgrading of the practical co-operation between engagement with Africa will focus on industrial
China and African nations,” said By. development and job creation.
“China is one of the largest investors in In addition to the quantitative increase, he
Africa. Despite the negative impact of COVID- said, China’s investment in Africa also presented
19, China’s investment in Africa climbed from a qualitative leap forward to make great contri-
$2.71bn in 2019 to $2.96bn in 2020.” butions to the industrialisation and employment
He also said that the achievements brought in the African continent.
the hope of economic recovery against the “Though Chinese companies are newcomers
pandemic. investing in Africa, they are shifting from going
Despite Chinese confidence, more West- to Africa to rooting in Africa,” he said.
ern-backed lenders to Africa have warned about He also said that to help Africa’s economic
the lack of transparency in Chinese lending and recovery, the Chinese government had signed
investment practices. debt service suspension agreements with, and
The African Development Bank (AfDB) said reduced or waived the interest-free loans for,
in its April African Economic Outlook that a multiple African countries, becoming the big-
large majority of these Chinese loans to the con- gest player in terms of relieving African debt
tinent were not transparent. among the Group of 20.
Between 2000 and 2018, Chinese lending He said that what China and Africa had
to Africa has been consistently above $10bn done together during the pandemic testified to
per year between 2012 and 2017, with a peak of their determination to build a closer China-Af-
$30mn in 2016, with infrastructure being the rica community with a shared future, and had
dominant sector, the report said. China is by far become living proof of the importance of unity
the biggest non-Paris Club creditor in Africa. in the face of global challenges.™
“The number of Non-Paris Club creditors in

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