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"China's Belt and Road Initiative and 'Debt Trap Diplomacy' in African Nations
Last month, during the 14th National People's Congress (NPC), China's national legislature spokesperson refuted Western assertions of a "Chinese debt trap" in Africa.
BEIJING, China-Last month, during the 14th National People's Congress (NPC), China's national legislature spokesperson refuted Western assertions of a "Chinese debt trap" in Africa.
According to Capital FM.co.ke, the spokesperson stated that such accusations were unfounded and not in line with the reality of China's economic cooperation with African countries.
China has reiterated its stance that African countries have greatly benefited from the infrastructure projects that are part of its Belt and Road Initiative (BRI)
China’s Belt and Road Initiative (BRI) has been a subject of debate for some time, with Western nations raising concerns about African countries falling into a “Chinese debt trap.”
However, China has refuted these claims, stating that African nations have benefited greatly from the infrastructure projects that are part of the BRI.
At the start of 2021, over 200 BRI cooperation agreements had been signed by 140 countries, allowing Chinese businesses to construct infrastructure projects such as ports, railways, power plants, and telecommunication networks using low-interest Chinese loans.
Capital FM.co.ke reported that Djibouti has been a strategic location for Chinese-led infrastructure projects.
The country’s ports handle 95 percent of Ethiopia's trade, and transshipments between Europe, the Middle East, and Asia are also accommodated by the ports.
The People's Liberation Army established its first foreign military facility in Djibouti in 2017, which raised concerns about China's economic activities in the region.
A significant Chinese-led infrastructure project connecting Djibouti’s capital to Addis Ababa via rail has been recently completed, which will eventually be developed along the Western African coast to facilitate tourist access to the treasures of the Red Sea and Atlantic Ocean.
Moreover, China has made significant investments in Djibouti, which now account for almost 70 percent of the country’s total domestic product in debt.
The largest port in Africa, a railroad to Ethiopia, and the nation's first overseas naval facility were all sponsored by Beijing.
China’s involvement in Africa has yielded significant benefits from BRI agreements, particularly private Chinese investment.
Capital FM.co.ke reported that a framework agreement for a concessional loan was signed by the Chinese and Djibouti governments for the Djibouti Assal Lake Salt Export Terminal Project at the Port of Goubet in 2012.
The exploitation of the salt from Lake Assal, which is around 10 times saltier than saltwater, has become a significant source of income for Djibouti.
China’s involvement in the project has led to significant infrastructure assets in the BRI project, and the government is considering a variety of options.
However, there are concerns about the environmental impact of these infrastructure developments.
The government of Djibouti has proposed a UNESCO declaration to declare the Lake Assal zone and the Ardoukoba volcano as a World Heritage Site to manage the exploitation of the salt from the lake and avoid negative impacts on the lake environment.
“Without a doubt, human activities such as urbanization, industrialization, population expansion, deforestation, etc. are the main causes of environmental degradation,” said a report by Capital FM.co.ke.