Okonjo-Iweala: China’s help in building Africa’s infrastructure is important

Ngozi Okonjo-Iweala, former minister of finance, says the
assistance China is rendering to African countries in building
infrastructure is important.

In an opinion published in Financial Times, Okonjo-Iweala, who
is now the co-chair of the Global Commission on the Economy &
Climate, said the concern about Africa’s rising debt profile is
real.

“The concern about Africa’s rising debt profile is real.
According to the IMF, sub-Saharan Africa’s debt to GDP ratio has
risen from 26.3 per cent in 2009 to 48.1 per cent today,” she
wrote.

“This ratio is far higher and in dangerous territory for a
handful of countries. Whilst Chinese debt may not be the biggest
contributor to this, African countries need to seek a good balance
of concessional loans, grants and foreign direct investment,
individually and collectively to sustain their development. China
is open to this.

“During my time as Finance Minister of Nigeria (2011-2015),
China worked with us to get a balanced package of assistance that
has helped build the light rail system in Abuja and four new
airport terminals in Lagos, Port Harcourt, Kano and Abuja, among
other projects.

“Directing Chinese assistance to build sustainable regional
infrastructure projects that can unlock the continent’s vast
potential is key.”

A number of people including Amina Mohammed, the deputy
secretary-general of the United Nations (UN), have complained about
the rising level of debt in Nigeria and the rest of Africa.

In March, Rex Tillerson, former US secretary of state, had
warned that loans from China are terrible for Africa.