Translated by: MOS Translation Team – Laniakea
On September 28, analysts from the China-Africa Research Project of Johns Hopkins University stated the African nation of Zambia owes the Communist China $6.6 billion, more than twice as much as the amount officially claimed by former President Lungu.
Accelerated by the COVID-19 pandemic, Zambia’s debt crisis exploded massively in November 2020, making it the first African country to default on sovereign debt. Hence, Zambia, the third-largest economy in Southern Africa and the second-largest copper producer in Africa, became a textbook case of the CCP’s “One Belt and One Road” debt trap. The Chinese Communist Party’s One Belt and One Road loan clauses allow the Chinese Communist Party (CCP) to control national assets of defaulting borrowers.
The CCP debt trap has affected 15 African countries, including Djibouti and Congo. Zambia’s example led to a deep concern about massive CCP debts among other African countries due to the huge loan amount and the requirement that signatories commit not to disclose the terms.
The lack of transparency on “One Belt and One Road” loans brings difficult challenges for new African governments to renegotiate undesirable deals made by their predecessors, and it is virtually impossible to convince other lenders and investors to put funds into economies corrupted by the CCP loans.
Posted by: Xiequyuan
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