The French website Coin Tribune said that since China launched the “Belt and Road” initiative in 2013, which aimed to enhance trade cooperation and infrastructure development between China and other countries, the initiative has become a subject of great controversy, especially regarding its effects on African countries.
While China describes the initiative as an opportunity for joint economic development, reports reveal that these investments have exacerbated economic crises in many African countries, making it look more like neo-colonialism than an economic partnership.
More debt, less interest
Figures indicate that China has invested more than a trillion dollars in infrastructure projects around the world as part of the “Belt and Road” initiative, however, the results of these investments in Africa are appearing in a worrying manner.
Many Chinese-funded projects suffer from poor planning and implementation, which increases the economic burden on recipient countries.
For example, in Uganda, more than 500 defects were discovered in a Chinese-funded hydropower plant, while in Angola, residents are suffering from structural problems in social housing built with Chinese support, the Queen Tribune reported.
In Angola, a massive public housing project outside the capital Luanda has many residents complaining of cracked walls, damaged roofs and shoddy construction. Even the high-speed rail line in Jakarta, Indonesia, sometimes described as the country’s most successful project, has suffered massive cost overruns and is years behind schedule. At some point, the Chinese government realized that the projects were a failure, and that it would have to choose between losing a lot of money and upsetting many other countries.
Debt colonization?
Reports show that African countries that have received Chinese investments find themselves drowning in debt without realizing the desired economic benefits.
According to CoinTribune, China not only provides loans to build projects, but also imposes control over these projects if the recipient countries fail to repay the debts.
A clear example of this is Sri Lanka, which was forced to hand over the port of Hambantota to China after failing to repay its debts. This scenario raises similar concerns in Africa, where African countries could be forced to cede strategic assets to China if they are unable to repay.
Economic and political tensions
Growing debt is not the only challenge facing African countries as a result of Chinese investment, says Quinn Tribune. Chinese-funded projects are also causing political and economic tensions in the region.
For example, in Myanmar, Chinese-backed infrastructure projects have led to widespread protests by local residents. In Pakistan, Chinese workers have been attacked as a result of popular anger, according to the site.
In addition, China is accused of over-exploiting Africa’s natural resources for its own benefit, leaving African countries dependent on Chinese investment without achieving real sustainable development.
