African countries are currently negotiating loan agreements with countries such as China while avoiding Western interests as well as the International Monetary Fund (IMF) and World Bank.
China has a history of offering aggressive upfront costs on loans in exchange for a lot of influence in the region. So I’m guessing China gave the AU a sweetheart deal in exchange for cutting out competitors and potentially allowing China a lot of lenience in future investments (e.g. sweatshops and unsafe mines).
So here’s what I see the strategy as:
give the AU a very expensive loan with an initial deferment; the leadership of the AU is happy because they can show the public that they’re doing something
some years down the line, the AU realizes it can’t actually pay the debt, and arranges further deals with China that increases China’s influence in the area
repeat 2 until Africa has been bled dry just as much as with European colonial powers
I don’t see this as a real long-term solution. Instead of trying to connect every African country, they should pick favorites at first, with a contract with member countries to eventually expand to everyone. As in, connect the most prosperous areas that will absolutely use the rail network, and expand once that cash flows, and do so without massive loans from countries with an economic interest in exploiting the area.
I just don’t see China’s interests aligning with the EU. This just seems likely to have heavy corruption where the AU gets short term benefits for a long term sellout of the AU to China.
My main concern here is this:
China has a history of offering aggressive upfront costs on loans in exchange for a lot of influence in the region. So I’m guessing China gave the AU a sweetheart deal in exchange for cutting out competitors and potentially allowing China a lot of lenience in future investments (e.g. sweatshops and unsafe mines).
So here’s what I see the strategy as:
I don’t see this as a real long-term solution. Instead of trying to connect every African country, they should pick favorites at first, with a contract with member countries to eventually expand to everyone. As in, connect the most prosperous areas that will absolutely use the rail network, and expand once that cash flows, and do so without massive loans from countries with an economic interest in exploiting the area.
I just don’t see China’s interests aligning with the EU. This just seems likely to have heavy corruption where the AU gets short term benefits for a long term sellout of the AU to China.