China’s investments are more influential in Africa compared to UK and France - Report
- Fresh details show that capital contributions from China to Africa are more significant than those from the UK or France
- However, investments from the two countries are higher than what China provides for the continent
- Concerns have been raised about how capital injection from China is likely to entrap African leaders and hinder attempts at eradicating poverty
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It has emerged that capital investments from China are smaller but are of more significant impact in Africa, compared to that of France and the United Kingdom (UK).
China’s contribution to Africa has sparked a debate about its ability to hinder development in the continent.
There have also been concerns about whether the capital is an obstacle that entraps African governments into acts that led hinder efforts aimed at reducing poverty.
READ ALSO: Afreximbank sets $3 bn aside as credit facility for African countries
Per a report by qz.com, capital injections into Africa and related activities such as the actual trends and patterns of foreign direct investment stocks, are hardly subjected to critical examination.
It has also been argued that media coverage of China’s presence in Africa is often misleading as information provided is usually inaccurate.
Information available shows that Chinese capital in Africa is by far the leading source of foreign direct investment in the continent.
In that respect, it has been suggested that efforts should be geared towards the fine-tuning inflow of Chinese funds into critical areas in which they are needed.
This would then lead to a connection to the national aspirations of every African nation in order to stimulate progress and development.
Meanwhile, finance ministers in Africa, have requested a $100 billion stimulus and a suspension of debt service payments.
The call, YEN.com.gh has learned, is part of a strategy to help the continent deal with the coronavirus.
Per a Reuters report, the sources for funding the debts include the World Bank, the International Monetary Fund (IMF) and the African Development Bank (AfDB).
It is expected that the proposed interest payment waiver would include interest payments on public debts as well as sovereign bonds.
READ ALSO: World Bank to soon support selected African countries with $1.4 billion
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