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The European Union is selling a 150 billion euro investment plan to Africa as a way to reduce the continent’s dependence on Chinese loans that have left countries in debt, a senior official said.
Jutta Ulpilainen, the EU’s Commissioner for International Partnerships, said that the EU is supporting the Global Gateway Program, which aims to counter China’s Belt and Road Initiative, which has generated more than $120 billion in state-backed loans to African countries. He said it has a strong marketing message. .
But the Chinese funding was accompanied by accusations of debt trapping, exploitation and corruption. The accusations have intensified in recent years after a wave of debt crises hit Africa, causing three countries to default on their debts.
“What I see as an impact of China’s activities in Africa is a huge dependence on China. So if you look at a lot of African countries, their debt levels are very high, and a huge amount of their revenue is actually The money is being used to pay off debts,” Urpilainen said in an interview in Ethiopia’s capital Addis Ababa. “In contrast, our goal is to help Africa become self-reliant.”
He said the EU was investing in transport, energy and digital projects, as well as education and health, under the Global Gateway Program.
However, the plan is still in its infancy compared to the Belt and Road Initiative of a decade ago. It also relies on more complex structures that draw on resources from EU member states and multilateral organizations.
Urpilainen was in Addis Ababa, which serves as the African Union’s headquarters, for talks with continental officials, including African Union President Faki Mahamat.
This article was generated from the Automata news agency feed without any modifications to the text.
