An Evaluation of China’s Loans and the Growth of Selected African Countries

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An Evaluation of China’s Loans and Growth of selected African Countries.
The research aims to determine the impact of China's Loan on selected African countries and their infrastructural growth. Various comparative studies have made conclusions on the positive impacts of infrastructural loans. In addition, these loans have proved to be a great boost to the growth and development of other countries. Recently, China has developed interests in Africa and created a mutual relationship in which they provide infrastructural loans on selected collaterals such as ports. However, many scholars have not yet found out if the loans are beneficial in the development of these countries or not. Thus, this paper is a qualitative study focusing on the economic growth of these countries and their economies before and after China's involvement.
However, the relationship between China and Africa raises different emotions. Some think China is exploiting Africa and putting them in a trap through debt. This way, they affect their decision-making capacity and ability to walk away from the bilateral relationship. China is the highest money lender in Africa; thus, the study will conclusively view the impact of these debts in Zambia, Tanzania, Kenya, Angola, and the Republic of Congo. Further, the study will determine if the loans benefit African countries, given the positive impact of loans and economic growth.
Several comparative studies have shown that infrastructural loans play a significant role in economic growth (Reisen 5). However, in Africa, China's infrastructural projects have received mixed reactions regarding their contribution to Africa's economic growth and development. Between 2001 and 2018, China disbursed $148 billion of loans to African nations, making it the biggest bilateral lender (Mlambo 1). Currently, the pressure for economic growth and development is high in Africa. This has made many African countries seek Chinese loans to improve their infrastructure. Kenya, for instance, has been taking Chinese loans since 2014 to fund its infrastructure projects, such as roads and clean power generation plants (Wang and Wissenbach 280).
The biggest project Kenya completed with Chinese loans is the Standard Gauge Railway, constructed at the cost of 3.6 billion USD, 90% of which was a Chinese loan (Wang and Wissenbach 280). Many infrastructural projects in Tanzania, Angola, Zambia, and the Republic of Congo have also been completed using loans from China. Improved infrastructure in these African countries has facilitated trade and connectivity, promoting economic inclusion (Large 53). Studies have shown that some Chinese loan beneficiaries are among Africa's fastest-growing economies.
Despite the economic growth and development in Africa influenced by Chinese loans, economists have questioned China’s development finance activities in Africa. Critics claim that China’s loans could promote enslavement, entrap Africans in debt, and drive debts to unsustainable levels (Brazys, Elkink, and Kelly 229). To some extent, China seeks to put Africans in a debt trust so that they can control African resources and profitable facilities like ports. They give Africans hi...