By Wu Dongxu
In recent years, there has been an avalanche of negative reports about the Belt and Road (B&R) initiative, many of which are focused on the debt implications for countries involved. Some Western and Indian politicians and commentators have begun using the term "debt colonialism" to describe China's lending practices in Africa. However, the debt issue should be viewed objectively, rather than through a political agenda.
Trade between two free parties must be mutually beneficial. Otherwise, one or both parties would not enter into the agreement. There are no reports of China forcing countries to take loans. Quite the opposite, African leaders have praised China's B&R initiative as a tremendous opportunity. The former Ethiopian prime minister Hailemariam Desalegn said the B&R falls perfectly in line with Africa's vision to achieve industrialization and sustainable development. Uganda hailed the initiative as empowering and liberating. Even the IMF has supported the B&R initiative, with the opening of the China-IMF Capacity Development Center. The countries taking the loans believe they will benefit from them.
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China only owns a small proportion of total African debt. According to the Center for Global Development, private creditors - not the Paris Club or China - hold much of Africa's debt. According to S&P, roughly $325 billion of sub-Saharan Africa's total $450 billion in debt is private.
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