April 2, 2023
1 min read

World Bank chief flags concerns about China’s loans to Africa

It comes amid worries that countries including Ghana and Zambia are struggling to repay their debts to Beijing…reports Asian Lite News

World Bank President David Malpass has said he is concerned about some of the loans China has been making to developing economies in Africa, according to a media report.

David Malpass says the terms and conditions need to be “more transparent”, BBC reported.

It comes amid worries that countries including Ghana and Zambia are struggling to repay their debts to Beijing, BBC reported.

China says that any such lending is done within international rules.

Developing countries often borrow money from other nations or multilateral bodies to finance sectors that will grow their economies such as infrastructure, education and agriculture.

However, steep increases in interest rates in the US and other major economies over the last year are making loan repayments more expensive because lots of that borrowing is done in foreign currencies such as US dollars or euros, BBC reported.

It is a particularly acute problem for developing economies who can struggle to find the extra money that is required as the relative value of their own currency falls.

It is a “double whammy and it means that (economic) growth is going to be slower”, says Malpass.

Tackling that challenge and its consequences was one of the main reasons for this week’s visit by US Vice-President Kamala Harris to three African countries. It is a visit that comes with big commitments of financial support to Tanzania and Ghana.

There is a growing rivalry with China for influence in the continent, whose abundance of natural resources include the metals, such as nickel, crucial for the batteries needed for technology such as electric cars, BBC reported.

ALSO READ: Pakistan, China to resume border trade after 3 years

Previous Story

India’s ‘Project Tiger’ @50

Next Story

Lanka sets up committee to oversee utilisation of IMF funds

Latest from -Top News

‘Kill and Dump’ Haunts Balochistan Again

The latest killings have reignited accusations of extrajudicial executions and the use of counterterrorism laws to cover up custodial deaths in Balochistan….reports Asian Lite News Concerns have deepened across Balochistan following the

‘ASEAN Expands, But Keeps Its Soul’

Malaysian Foreign Minister Mohamad Hasan urged ASEAN to uphold its unity and strategic resolve amid intensifying geopolitical tensions and mounting external pressures…reports Asian Lite News Consensus and inclusivity will remain the cornerstones

Bangladesh bends to beat Trump’s blow

Dhaka seeks compromise as Trump’s 35% tariff looms large over key exports; Washington urges worker protections, factory relocation to US…reports Asian Lite News Bangladesh has opened the second round of critical trade

China seethes as US lands F-35s in PH

As US F-35 jets land in the Philippines for the first time, Manila cements its frontline role in Washington’s power play against rising China….reports Asian Lite News The Philippines is rapidly cementing
Go toTop

Don't Miss

Spy Balloon Affair Triggers Cold Spell in US-China Relations

The US House of Representatives on Thursday passed a resolution

Pompeo says Wuhan lab was into military research

China is coming under increasing pressure over probe into the