Chinese premier visits Zambia, amid Western interest
Chinese Premier Li Qiang visits Zambia (AP)
In a landmark trip to Zambia, a Chinese premier has visited the country for first time in 28 years, with Beijing looking for long-term cooperation, according to a Reuters report on November 19th.
The trip by Chinese Premier Li Qiang is the first high-profile visit in almost three decades. Han Jing, China’s ambassador to Zambia, said that Li’s visit should have an outcome of a dozen cooperation agreements, according to the embassy’s post on Facebook.
Zambia is recovering from a larger debt crisis, from which it owes China $5.7 billion. Zambia’s $13.4 billion debt is now reportedly easier for the country to repay.
Zambia is a copper-rich country, and China is pushing for more direct investment in mining, infrastructure and industrial capacity. Chinese firms have already invested roughly $6 billion in Zambia over the past 20 years, mostly in metals. Beijing also wants to grow its exports tractors, electrical equipment, and construction vehicles.
It was reported on September 4th, that Chinese mining company, Sino-Metals Leach Zambia, was accused of covering up the level of a toxic spill in Zambia. It has been claimed that more than 900,000 tonnes of toxic waste were present in the contaminated environment, at the time. The US embassy in Zambia discovered “hazardous and carcinogenic substances” within the environment and removed officials from the affected area.
Investigators claimed the spill was far worse than reported. Testing over 3,500 samples, they revealed dangerous levels of toxins like cyanide, arsenic, copper, lead, zinc, chromium, and cadmium.
Eric Orlander, co-founder of the China-Global South Project, said that “Li is going to bolster China’s presence in a strategically vital country.” He added that the Zambian President Hakainde Hichilema and Chinese mining companies are going to need support.
China and the West are competing for access to Zambian minerals through infrastructure corridors. A top EU official has already made a visit this month to discuss new investment in the Lobito corridor.
Many African countries, including Zambia, had a crisis following the COVID-19 pandemic which prompted them to borrow heavily to address their health emergencies. Much of Zambia’s borrowing — historically with heavy interest rates— has come from private creditors, mostly Chinese, making it difficult for the Zambian government in some respects, to come out of debt.
In the face of debts, it has been said that African countries like Zambia should be focusing on leveraging African capital via development banks, pension funds, and sovereign wealth to finance future development, rather than relying on external lenders.
China wants to appeal to African countries to showcase how Chinese assistance can help them recover from financial crises. Chinese ambassador to Zambia, Han Jing, said: “The impact of Chinese aid and investments can be felt across the country as an important force for economic transformation and the social progress of Zambia.”
China’s interests in African mineral wealth stem from huge metal demand for electric vehicles and technology development. Zambia’s economy is projected to grow 6.5% next year, more than the average of 5% over the last two decades.
Earlier this year, the UAE had overtaken China as Africa’s largest investor. With International Resources Holding RSC Ltd of Abu Dhabi winning a deal to invest more than $1bn in Zambia’s Mopani copper mines in 2023.
The Chinese Premier’s visit signals a strategic investment which could boost Zambia’s economy. Ghana’s recent move to remove VAT on mineral exploration shows how targeted investment is vital for Africa’s economic growth.
Reuters, Maghrebi.org
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