July 12, 2019
This excellent article, once again refutes the slander that China is imposing a ‘debt-trap’ on African nations. The author, Ehizuelen Michael Mitchell Omoruyi, executive director of the Center for Nigerian Studies at the Institute of African Studies, Zhejiang Normal University, shows how China through the Belt and Road is developing vital infrastructure for Africa.
“Millions of articles have been written on China-Africa engagement that involve the terms “Sino-optimism,” “Sino-pragmatism” and “Sino-pessimism.” With that said, somehow, China has also been mentioned in some Western media in a negative light, including headlines with phrases such as “Can China circumvent the middle-income trap?” “China’s trapped transition,” “The Thucydides Trap” and the “debt trap.”
“As for the debt trap, the term refers to the idea that Chinese loans in the continent of Africa are a strategy by the Middle Kingdom to extract concessions and purchase allegiance. I do not concur! China’s involvement with African nations is far beyond building railways, bridges and roads…
Continue reading: Belt and Road Offers Development not Debt Trap
China Announces $1 Billion Belt and Road Africa Fund Led by South African
Announced July 3 on the sidelines of the Summer Davos Meeting World Economic Forum in Dalian, China, this $1 billion investment fund also achieves another first–in that it will be not be run by the state government–thus being China’s first “NGO.” It will also notably be led, not by a Chinese, but by a South African.
Intended to be up and running by September, this fund–to be capitalized by wealthy Chinese businessmen and their families–will be headed by Dr. Iqbal Survé, “born and educated in Cape Town” (according to his website). Survé had started his own, Sekunjalo investment fund in 1997, leaving his medical career at the call of Nelson Mandela, who was seeking local investors to lead the development of the economy. Dr. Survé had become “affectionately known as the ‘Struggle Doctor’ because of his provision of medical care towards victims of apartheid brutality,” says his “about” page.
Since then Survé came to serve as chair of the BRICS Business Council for South Africa, and most recently as a member of the Business Council Chairman for the five BRICS countries. A hedge fund operator he definitely is not. Commenting from China, Dr. Survé said, “The discussions that we’ve had with Chinese business people, state-owned enterprises and family offices, have resulted in the establishment of this fund. Africa is ready to grow and is heading towards a $5 trillion economy. The [Africans] have seen how China was able to grow from 1980, when China made up only 2% of the global GDP when compared to today, where China makes up 19% of the global GDP.
This fund is a great boost for the development of Africa.” The fund will be overseen by a Belt and Road Business Council, eventually to grow to 1,000 Chinese and African members.