Succor As China Sets to Exempt Some African Countries From Repaying Loans

By Stanley Ugagbe

In a crucial development that some African Presidents have applauded, China has disclosed that it will be exempting some African countries from paying back the zero-interest-rate loans that are due at the end of this year.

President Xi Jinping made the disclosure at the “China-Africa Summit on Solidarity against COVID-19”.

The number one citizen of China also disclosed that the nation will be providing further support, including loan maturing extensions, to free up funds needed to deal with the impact of the coronavirus pandemic. 

The Chinese President who chaired the China-Africa Summit on Solidarity against COVID-19 said, “Within the FOCAC framework, China will cancel the debt of relevant African countries in the form of interest-free government loans that are due to mature by the end of 2020.

“For those African countries that are hardest hit by the coronavirus and are under heavy financial stress, China will work with the global community to give them greater support, by such means as further extending the period of debt suspension, to help them tide over the current difficulty.

“We encourage Chinese financial institutions to respond to the G20’s Debt Service Suspension Initiative (DSSI) and to hold friendly consultations with African countries according to market principles to work out arrangements for commercial loans with sovereign guarantees”.

He added that “China will work with other members of the G20 to implement the DSSI and, on that basis, urge the G20 to extend debt service suspension still further for countries concerned, including those in Africa.”

In his words, President Jinping succinctly averred that China is also willing to give priority to African countries once the COVID-19 vaccines are ready for use. It will ensure that countries in the continent are among the first to benefit from any coronavirus vaccine it develops, although no further details were provided.

However, experts are of the view that the gesture is a way for China to get back to the good books of African countries after allegations of indecent treatment and discrimination against Africans in Guangzhou by the authorities.

In his remarks, South African President Cyril Ramaphosa said at the meeting that the summit “demonstrates the depth and resilience of solidarity between China and Africa.”

While calling on both sides to continue to strengthen the bonds of solidarity and take collective action to secure the future of humanity, he said “Sino-African solidarity and better multilateral cooperation are key to winning the battle against this pandemic”.

On his part, Senegalese President Macky Sall described the summit as “an excellent initiative” adding that that leaders attending the meeting have reaffirmed their aspiration to consolidate the friendship between Africa and China.

The “China-Africa Summit on Solidarity against COVID-19, is an initiative that called for more efforts to mobilize necessary resources, stick together in collaboration, and do whatever it takes to protect people’s lives and health and minimize the fallout of COVID-19.

The summit was held via video conference from Beijing and was jointly initiated by China, South Africa, the rotating chair of the African Union (AU), and Senegal, the co-chair of the Forum on China-Africa Cooperation (FOCAC).