China’s loan-enslavement strategy has suffered a major setback in Africa. Several countries in Africa have canceled projects from China, while others are under review. China was trying to make these countries its economic slaves by giving loans through the Belt and Road Initiative. Not only this, China was also exploiting the resources of African countries to meet its domestic needs. Chinese companies were engaged in exploiting Africa not only through natural but also human labor.
Africa not happy with the poor work of Chinese companies
According to the Singapore Post report, the poor work of Chinese companies has become a source of tension for the ruling system in many countries of the African continent. To overcome this, many countries are engaged in reviewing the deal made with China. Chinese companies are also not following the rules of the deal. They are either negligent in almost all the projects or they are left pending.
Ghana canceled the contract of the Chinese company
The African country of Ghana recently canceled the contract of Beijing Everyway Traffic and Lighting Tech Company. This company was about to build an intelligent traffic management system in Ghana. The Government of Ghana, in its investigation, found that the work of Everyway Traffic and Lightning Tech did not meet any satisfaction. After which he announced to cancel the entire deal in one go.
Congo is also reviewing the Chinese deal
A few days ago, the Democratic Republic of Congo (DRC) had announced to start a review of a mining deal with China worth about 44 thousand crores. Congolese President Felix Tshisekedi said he wants to make fair deals for his country. China’s exploitative nature angered the president, saying that those with whom his country signed contracts are getting richer while the DRC (Congo) people remain poor. In 2008, then-Congolese President Joseph Kabila signed a deal with Chinese state-owned Sinohydro Corp and China Railway Group.
Kenya canceled a $3.2 billion deal
In July last year, Kenya also gave a big blow to China. The High Court of Kenya ordered the cancellation of the deal for the construction of a standard gauge rail line. The total value of this deal between China and Kenya was around USD 3.2 billion. The court had declared the entire project illegal. The court had also told that Kenya’s Kenya Railway Standard Gauge has not worked as per the standards regarding this deal.
China investing heavily in African countries
In the year 2020, when the whole world was troubled by the corona virus epidemic, then China had invested more than 33 thousand crores in many countries of Africa. China’s move can be gauged from the fact that it is investing in many projects in Africa’s oil, gas and mineral producing countries.
Nigeria has given the highest loan
Last year, the China Development Bank (CDB) and the Export-Import Bank invested at least $3.1 billion in the Ajokuta-Kaduna-Kano natural gas pipeline project in Nigeria. China has reduced its investment in energy projects by at least 43 percent in 2020 compared to 2019. However, the reason for this is being attributed to the corona virus epidemic. Due to the epidemic, the work of projects in the African country came to a standstill, while China had to spend on health in its own country.
China has invested money in these African countries
China’s China Development Bank (CDB) and Export-Import Bank of China (Exim Bank) are making massive investments for hydro power stations in Ivory Coast and Rwanda and solar facilities in Lesotho. Apart from these countries, these two state-owned Chinese banks have also financed projects worth billions of dollars in Bangladesh, Pakistan, Cambodia and Serbia. A large part of this amount is associated with the Belt and Road Initiative, the ambitious project of Chinese President Xi Jinping.