Aerial photo taken on April 9, 2022 shows the Kenneth Kaunda International Conference Center in Lusaka, Zambia. Zambia on Tuesday commissioned an ultra-modern international conference center financed by China.(Photo: Xinhua)
 

China's financial cooperation with African countries has always been geared to enhancing their capacity for achieving independent and sustainable development, and the loans-financed projects in Zambia enhanced the country's debt sustainability, Mao Ning, a spokesperson from China's Foreign Ministry said on Tuesday, refuting allegations that China is an obstacle to solving Zambia's debt problem.

Mao's remarks came after that David Malpass, head of the World Bank, said in an interview with Bloomberg TV on January 25 that China is asking lots of questions in the creditors' committees, and that causes delays in the process. 

"It's important for China to be focused on getting to an actual debt restructuring where the burden can be lightened for Zambia," Malpass said.

On January 23, US Treasury Secretary Janet Yellen said on a visit to Zambia that China had been a "barrier to resolving the southern African country's debt problem", according to Reuters.

In response to the reports, Mao noted that China has always attached great importance to Zambia's debt problem. Under the common framework of the G20, it has played a constructive role in dealing with Zambia's debt.

According to data disclosed by the Zambian Ministry of Finance, multilateral financial institution debts account for 24 percent of Zambia's current external debt; commercial creditors, which are predominantly Western countries, account for 46 percent of the debt, with both holding the bulk of the country's external debts. 

"The participation of multilateral financial institutions and commercial creditors as major creditors in debt reduction is the key to effectively resolve Zambia's debt burdens," Mao noted.

Mao said that the key to addressing Africa's debt problem is through economic development, and that China's financial cooperation with African countries has always been geared to enhancing their capacity for achieving independent and sustainable development. 

Over the years, China has used its financial and technical advantages to support African countries in implementing a large number of infrastructure projects, which have effectively contributed to local economic growth and improved local living standards.

"I can give you an example of a major project financed and built by China to Zambia called the Kafue Gorge Lower Hydropower Station, which was connected to the grid last year and has an installed capacity of 750 megawatts. It can help reduce carbon emissions by 663,500 tons per year. The financing amount of this project is relatively large, but the economic benefits it generated greatly contributes to Zambia's coffers," Mao said.

China considers loan projects like Kafue Gorge Lower Hydropower Station as enhancing the sustainability of Zambia's debt, rather than the other way around, the spokesperson said.

Global Times