Dozen of the world’s poorest nations are plunged into economic crisis and even disaster by the burden of hundreds of billions of foreign loans, much of which were provided by the world’s largest and toughest government lender, China, according to an Associated Press report.
External Affairs Minister S Jaishankar on Wednesday attacked China’s ‘debt trap’ policy, asserting that India has faith in “capacity-building” and “skill development” when it invests abroad. Speaking at the Japan-India-Africa Business Forum, Jaishankar stated, “India’s approach to Africa has always been guided by a deep-rooted commitment to building long-term, mutually beneficial partnerships.”
“While extractive models of engagement, India has faith in capacity building, skill development and technology transfer, so that African nations not only gain from investments but also build self-sustaining growth ecosystems,” he further added.
Dozen impoverished nations are struggling with economic instability and even disintegration under the burden of hundreds of billions of dollars in foreign debt, much of it from the world’s largest and most ruthless government lender, China, a 2023 report by the Associated Press said.
Behind the scenes is the Chinese reluctance to give credit forgiveness and its extreme reticence to disclose how much money it has loaned and on what terms, which has kept other major lenders from filling the gap.
Pointing towards India’s contribution to Africa’s growth story, the Indian Foreign Minister stated, “India has also made a substantial commitment to Africa’s connectivity and infrastructure development, with over USD 12 billion concessional credit and over 200 completed projects across the continent covering sectors like railways, power generation, agriculture, and water supply.”
Jaishankar stated that India’s development projects in areas like power plants, transmission lines, cement, sugar and textile mills, technology parks and railway infrastructure created local jobs and transformed lives in Africa.
India’s long and profound connection with Africa can make it a natural bridge, either geographically or in the industrial value chain, he contended. With India poised for sustained high economic growth, it is a perfect location for Japanese firms looking to move into Africa and the Middle East,” he stated.
“Japanese investments, India’s strong industrial base and digital capabilities and Africa’s talent and consumption can be combined to produce positive results for all parties,” he added.
