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“Second Cold War”: How the West is pushing Africa into China’s “debt-trap”

A FEW days ago, Kenneth Kaunda, Zambia’s first president, died at the age of 97. He was the last of a generation of African leaders who stood up to colonialism. He enjoys the same stature as Nelson Mandela, who successfully opposed and ended apartheid in South Africa.

Both leaders have dedicated their lives to freeing their homeland and people from any form of colonisation. They accomplished their purpose but the current crop of African leaders has failed to grasp these great leaders’ aspirations for Africa as a whole. These former leaders’ altruistic goals for Africa are steadily being eroded by neo-colonialism, in the form of economic influence.

China’s growing influence in Africa, which is threatening America’s hegemony as the globe’s sole superpower, has the potential to spread throughout the world. Africa is now deeply divided between the influence of the West and that of China.

During the “first” Cold War, the US and Soviet Union pitted their strength against one other on foreign terrain. For example, the Egyptian Revolution of 1952, Algerian War, Congo Crisis, Suez Crisis (Egypt), the South African Border War, the Mozambican War of Independence and 1982 Ethiopian–Somali Border.

The proxy trade war between China and the US has been dubbed the “second Cold War.” The Joe Biden administration signed an Executive Order (EO) earlier this month prohibiting Americans from participating in 59 Chinese firms, including Hangzhou Hikvision Digital Technology, Proven Glory Capital and Proven Honour Capital.

As per the EOs, the conflict between these countries is real and other nations may serve as a test bed for them to gauge their strength on global issues. Therefore, Africa is being viewed as a new “theatre” in which these two countries might put their dominance to the test.

Foreign aid, investments and loans

Africa is one of the most important recipients of US foreign aid, which is about 20% of its cumulative assistance. However, the sum was substantially reduced during the Donald Trump administration. This has provided China with an opportunity to expand its influence in Africa, through infrastructure loans and other sorts of assistance.

Furthermore, just a few days earlier, UK Prime Minister Boris Johnson proposed a 0.2% cut in foreign aid, equivalent to almost £4 bil. Oxfam and ActionAid UK have both expressed their displeasure with the decision. Nigeria, Somalia, South Sudan, Ethiopia and the Democratic Republic of Congo are the top recipients of UK foreign aid in Africa.

Former colonial powers such as France and the UK have a moral obligation to support their former colonies financially through existing foreign aid programmes during COVID-19, and withdrawing funding at these difficult times would be utterly irresponsible.

According to a recent Washington Post report, China is Africa’s largest bilateral creditor, holding at least 21% of African debt and responsible for over 30% of debt service payments this year. One of the variables that contribute to neo-colonialism is economic power. Neo-colonialism is the indirect control of less-developed or developing countries by wealthier countries. A less-developed or developing country’s debt is a hoax created by a rich country in order to recolonise indirectly. According to Brahma Chellaney, China used debt-trap diplomacy to expand its influence in Africa.

China’s long-standing affinity with Africa is based entirely based on economic and political grounds. Natural resources abound in Africa and this might be the linchpin for China’s expansion. According to the Johns Hopkins University-based SAIS China Africa Research Initiative (SAIS-CARI), China is Africa’s largest trading partner, worth more than US$190 bil in 2019.

From 2003 to 2019, China’s foreign direct investment in Africa increased from US$75 mil in 2003 to US$2.7 bil in 2019. The Democratic Republic of Congo, Angola, Ethiopia, South Africa and Mauritius are the top recipients of Chinese FDI in 2019. These are some of the evidences which shows that China’s influence in Africa is gaining traction.

Kenya and Zambia debts

Strategic and state-owned companies in Kenya and Zambia are at risk of being taken over by China due to a lack of ability to repay debts, confirming China’s influence. The Port of Mombasa, which was used as collateral for a loan obtained from China for Kenya Railways Corporation (KRC), is at risk, according to Maritime Executive.

One of the terms of the contract, which both parties signed, is that Kenya’s sovereign immunity on collateral assets is waived. This is a dangerous precedent for sovereignty of any nation. Such a contract would allow a foreign Government to seize possession of the state’s property without difficulty, exposing the state’s vulnerability and infringing national security.

Zambia owes Chinese firms more than US$3 bil out of a total external debt of US$12 bil. Last year, the country’s national debt surpassed more than 90% of its gross domestic product (GDP).

According to globalriskinsights.com, former Broadcast Minister Chishimba Kambwili stated in 2019 that if Zambia is unable to repay Chinese commercial lenders, the Government will have to relinquish access to the country’s copper resources and public assets, including the Kenneth Kaunda International Airport to China.

Mismanagement of Zambia’s economy, as well as taking excessive debts from China, are some of the factors contributing to the country’s current predicament. Meanwhile, Djibouti, Madagascar and South Africa have all had debts with China in recent years, with the most of the loans focused on development and infrastructure projects.

China’s expanding economic clout and political influence, as well as its willingness to help Africa’s less developed countries, have been perceived as a threat to Western supremacy on the continent.

G7 and NATO against China

The 47th G7 summit, held in Cornwall, UK, recently raised a collective voice to counter China’s growing influence by providing poor countries with the Build Back Better World (B3W) initiative, a nearly US$40 tril infrastructure plan that could compete with China’s Belt and Road Initiative (BRI).

In addition, the G7 leaders are looking for a coordinated response and consensus to challenge China’s increasing economic and military strength.

Furthermore, at the North Atlantic Treaty Organization (NATO) summit in Brussels, Belgium earlier this month, the leaders emphasised that China’s current goals and forceful behaviour are posing a threat to the rules-based international order and regions critical to alliance security.

Biden, unlike his predecessor, wants to strengthen NATO-led partnership to challenge China’s ascent. He also reaffirmed Article 5, the root of NATO’s existence, which spells out a collective defence to protect the members’ states security. He saw this as the US’ “scared obligation” to its European allies.

According to nato.int, collection defence refers to the fact that an attack on one ally is treated as an attack on all allies. NATO used this article for the first time following the 9/11 attacks in the US. The collective defence was also adopted in the aftermath of the Russia-Ukraine crisis and in reaction to the situation in Syria.

Despite China’s strong opposition to the G7 and NATO’s criticism, a shift in the geopolitical landscape is on the horizon. China stressed that the days of global decisions being imposed by a small set of countries are over. The current conflict between the West and China has asserted Samuel P Huntington’s “clash of civilisations” theory.

Conclusion

The continuous conflict between the West, led by US and China is taking a toll on Africa. The majority of African countries are underdeveloped. Both the West and China should be helping the continent, not burdening it with debt and foreign influence.

Africa is currently in serious need of regeneration. The lack of COVID-19 vaccines, combined with Africa’s general economic recession, should not be seen as a chance to exacerbate their suffering.

The majority of African countries are members of the Non-Aligned Movement (NAM). The primary goal of this forum is to opposes imperialism, colonialism, neo-colonialism, racism and any forms of foreign invasion, occupation, dominance, intervention, or hegemony, as well as major power and bloc politics. As a result, Africa’s neutrality should be preserved and respected.

Despite the fact that some have characterised China’s influence in Africa as neo-colonialism through debt-trap diplomacy, the West is progressively abandoning Africa’s needs by slashing foreign aid, forcing African countries to select China as their economic partner.

In a nutshell, the leaders of African countries must unite through the Africa Union (AU) to safeguard the continent’s sovereignty.  They should also emulate selfless leaders like Mandela and Kaunda for their contributions not only to their countries, but to the continent as a whole.

Superpowers will always find a way to enrich themselves, no matter what it takes. As a result, it is the primary responsibility of African leaders to safeguard their countries’ sovereignty and liberate their people from the clutches of imperialist powers. – June 27, 2021.

Source: https://focusmalaysia.my/second-cold-war-how-the-west-is-pushing-africa-into-chinas-debt-trap/

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