- The Chinese government has granted debt relief to Rwanda, one of the African countries to benefit from China's promise
- China waived about N3.1 billion ($7.7 million ) in debt forgiveness to China to allow the country to develop critical road infrastructure
- China had offered to forgive some interest-free loans to some impoverished and poor African countries
To fulfil its promise of forgiving some African countries' debts, China has waived about N3.1 billion in debt to Rwanda so the government can develop some critical infrastructure.
China offered debt relief to Rwanda to build a 6.36-kilometre Musaka-Kabuga road under the Kigali urban road upgrading project.
Gesture part of plans to develop Rwanda
A statement by Rwanda suggests that the $7.1 million debt relief is part of the Asian country's promise to grant debt relief to impoverished African countries.
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As per the release, the move is part of China's decision to cancel the outstanding interest-free loans in agreement with economic and technical corporations in the East African country.
Business Insider reported that the Minister of Finance and Economic Planning in Rwanda, Uzziel Ndagijiamana, said on Monday, November 28, 2022, that the two countries enjoy robust bilateral cooperation evidenced in Rwanda's development hopes.
At the signing ceremony, the Chinese ambassador to Rwanda, Xuekun, said China hopes the gesture will impact the East African country's all-around transformation and recovery from the COVID-19 pandemic.
Various sectors benefitting from Chinese loans
He stated that China would work with Rwanda in the future for deeper, practical cooperation in various aspects under the Belt and Road Initiative framework to deliver other benefits to the two countries.
Ndagijiamana stated that Rwanda had benefitted immensely from its relationship with China.
Infrastructure, energy, education and health are some economic sectors that have benefitted from China's loans to Rwanda.
Meanwhile, Nigeria’s biggest bilateral creditor, China is reported to be cutting back lending in Africa, specifically, Nigeria amid its worsening growth woes.
Nigeria’s external debt to China accounts for 83.57 per cent of the West African country’s total debt as of June 30, 2022, totaling $3.9 billion, a 12.7 per cent increase from $3.5 billion in the same period last year, according to data from the Debt Management Office (DMO).
BusinessDay reported that the evolving debt dynamics with Beijing, whose lending is focused on lasting infrastructure projects, threatened to push reluctant governments into the arms of the International Monetary Fund (IMF) and World Bank for the balance of payments support.
China promises to forgive 23 interest-free loans for 17 African countries
Legit.ng reported that China has pledged to forgive about 23 matured interest-free loans for 17 countries in Africa.
Chinese foreign minister Yi said this during an address at Forum China-Africa Cooperation and said the gesture is a demonstration to foster a stronger economic bond with Africa.
The foreign minister stated that this shows how much the Chinese government keeps its words on African development with tangible action.