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World News | China’s “Belt and Road” Initiative and African countries’ “debt trap diplomacy”

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Nairobi [Kenya]April 27 (ANI): Last month, a spokesman for China’s national legislature dismissed Western claims of a “Chinese debt trap” in Africa during the 14th National People’s Congress (NPC) on March 4 this year Assertions, Capital FM.co. ke reports.

In fact, China claims that African countries have benefited greatly from infrastructure projects as part of its Belt and Road Initiative (BRI).

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In early 2021, 140 countries signed more than 200 BRI cooperation agreements as a framework for Chinese companies to build infrastructure projects such as ports, railways, power plants and telecom networks using low-interest loans from China to host countries, Capital FM.co.ke reports.

Although these projects have brought development to these developing countries in Africa, little is known about the conditions under which the loans signed in the financing agreement are.

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The People’s Liberation Army (PLA) established its first foreign military installation in Djibouti, at the mouth of the Red Sea in 2017, drawing more attention to Beijing’s economic activities in the Red Sea region, capital FM.co.ke reported.

Moreover, Djibouti is strategically located at the confluence of the Red Sea and the Gulf of Aden; 95% of Ethiopia’s trade is handled by its ports.

Transshipment between Europe, the Middle East and Asia is also done through the port of Djibouti. According to Capital FM.co.ke, the government has maintained military ties with France for many years, as well as the United States, Japan, Italy, Germany, Spain and China.

A major Chinese-led infrastructure project, which will eventually be developed along the West African coast to make it easier for tourists to explore the treasures of the Red Sea and Atlantic Ocean, has recently been completed, linking the capital Djibouti with Addis Ababa by rail.

Africa’s largest port, a rail link to Ethiopia and the country’s first overseas naval installation are all sponsored by Beijing, and Djibouti is now said to be in debt of nearly 70 percent of its GDP, reports Capital FM.co.ke.

These major investments by Beijing in Di Djibouti are a microcosm of how China has quickly established a significant footprint across the country.

Furthermore, a report suggests that Chinese engagement in Africa, especially Chinese private investment, is reaping huge benefits from the BRI agreement. On November 11, 2012, China and the Djibouti government signed a framework agreement on preferential loans for the Djibouti Assal Lake Salt Export Wharf Project in Gube Port. The Export-Import Bank of China and the Ministry of Finance of Djibouti signed a loan agreement of US$61.37544 million for the project, Capital Reported by FM.co.ke.

Lake Assal, the lowest point in Africa, is 155 meters below sea level. With an average salinity of 34.8% (increasing to 40% at a depth of 20 m), it is the second most saline body of water and is about 10 times more saline than saline water.

When the Eritrea-Ethiopia war broke out in 1998, Djibouti became Ethiopia’s main supplier of salt. Prices have remained high due to the demands of Ethiopia’s 62 million population. For this reason, salt from Lac Assal is called “white gold”.

Rich in minerals like magnesium, calcium, and sulfates, Lac Assal’s water is used to cleanse, calm, and revitalize the skin, as well as treat ailments like rheumatoid arthritis and muscular discomfort.

China now has substantial infrastructure assets in BRI projects, and the government is no doubt considering a number of options. According to Capital FM.co.ke, it still has external cooperation agreements for its own benefit.

The future of Lac Assal will undoubtedly involve commerce, whether through greater tourism or salt mining. There are plans to build a visitor center and health resort, similar to those on the Dead Sea shorelines in Israel and Jordan, as well as new industrial sites. Therefore, we need to understand how the development of these infrastructures may affect the environment and ecosystems.

There have been reports of uncontrolled mining of lake salt, so the Djibouti government has emphasized the need to manage mining to avoid negative impacts on the lake environment and has proposed, together with UNESCO, to declare the Assal Lake District and Ardoukoba according to Capital FM.co. Ke reported that the volcano was listed as a World Heritage Site.

There is no doubt that human activities such as urbanization, industrialization, population expansion, and deforestation are the main causes of environmental degradation. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)


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