China To Forgive Debt of 23 African Countries

The People’s Republic of China has committed to forgive interest free loans of 23 African Countries.

The Chinese foreign minister made this statement known in a forum on China-Africa cooperation. According to him, the 23 countries whose debts would be forgiven have debts that have matured since 2021. Wang Yi however failed to specify the particular African countries that would be forgiven.

He pledged that China would continue to actively support and participate in the construction of major infrastructure projects in Africa through financing, investment and assistance.

We will also continue to increase imports from Africa, support the greater development of Africa’s agricultural and manufacturing sectors, and expand co-operation in emerging industries such as the digital economy, health, green and low-carbon sectors.”

“What Africa wishes for is a favourable and amicable cooperation environment, not the zero-sum Cold War mentality,” Wang said, according to the post.

Since the Forum on China-Africa Cooperation took place in Senegal in November 2021, Beijing has delivered $3 billion of $10 billion of credit facilities pledged to African financial institutions, Wang said in the speech.

In addition, this year China has agreed to tariff-free entry to 98% of exports from 12 African countries and has provided emergency food assistance to Djibouti, Ethiopia, Somalia and Eritrea, he said.

“So far this year, China has signed exchange of letters with 12 African countries on zero tariff for 98% of their export items to China. We have provided emergency food assistance to Djibouti, Ethiopia, Somalia, and Eritrea. More African agricultural produce has reached the Chinese market through the green lanes,” he added.

It is to be noted that China is the leading lender to over 32 African countries and the continent owes China more than $148 billion dollars combined.

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