President Lazarus Chakwera has pleaded with the Chinese Government to consider cancelling debts for African countries including Malawi or, at least, restructuring repayment modalities.
Chakwera said by doing so, China would lead developed countries in helping developing African countries, such as Malawi, achieve “exponential growth.”
Speaking as one of the guests of honour at the opening of the China-Africa Economic and Trade Expo in China Thursday, Chakwera said the debts are a burden to the continent in the global race towards prosperity.
He said what Africa needs from China now is not debts but investments which would have mutual benefits to both China and Africa.
Chakwera, however, was quick to point out that Africa’s debt to Western banks is three times higher than to China.
He said most of the debts were accumulated during previous governments for consumption purposes instead of investment.
“As a result [of the debts], many of us African leaders are carrying migraines of debt distress that force our countries to enter the vicious and unsustainable cycle of taking more debts just to service already existing debts from the past,” the President said.
Chakwera also called on African countries to integrate African economies to increase their bargaining power in global trade.
“Thus, the African Continental Free Trade Area that the 55 African countries ratified on paper must urgently be implemented,” he said.
He also said if at all there is to be economic partnership between China and Africa that would result in exponential growth, both sides must reflect deeply on changes that must be made in the way of managing shared interests.
Chakwera then urged Africa to start learning lessons from China’s growth over the past six decades, arguing that Chinese economic growth is no longer a subject to study but an example to emulate.
“Part of emulating the example of exponential economic growth involves accepting painful realities that China accepted in the 1960s and that we, too, must accept in Africa today,” he said.
The President further indicated that the first example to emulate was for Africa to make its own products that are valuable for trade and exports.
He then called on the Asian country to support Africa in building industries for adding value to whatever the continent produces.
China’s Vice President Han Zheng said his country and Africa have always upheld sincere ties based on solidarity and cooperation, thus becoming a community with a shared view and interests.
“China has announced and implemented a series of measures of cooperation with Africa, which will bring China- Africa cooperation to new heights. China remains Africa’s largest trading partner.
“China-Africa economic and trade cooperation has been extended from traditional areas of trade and engineering to emerging ones such as the digital sector development, aviation and aerospace and finance,” Han said.
The expo, which has attracted exhibitions from China and Africa, is expected to end on Monday next week.
