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Deciphering Economic Warfare Code: The Sub-Saharan Africa Front

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This week Moody’s warned the whole world of Kenya struggling to repay heavy Chinese debt. News from the South African gained over 400 social media shares too, amplifying the hysterical warning that all of Sub-Saharan Africa is at risk of having “strategic assets” seized when unpaid debts come due. Once again, it’s interesting to note there’s no mention of the Anglo-European debt circle. So, here’s the dissenting view on Chinese versus western imperial economic war.

Economic Propaganda

The South African story hinges on a single loan by the Chinese for building the Standard Gauge Railway (SGR), undertaken by China Road and Bridge Corporation (CRBC), a debt of some $5.4 billion, which author Luke Daniel says is “more than 70% of the African nation’s total bilateral debt.” The author cites Moody’s and brings to bear the argument that the Chinese are not loaning Africa money wisely, but to leverage the old continent out of its resource legacy. He goes on to proclaim:

“Financial assistance granted by the World Bank and European Union stresses compliance with objectives related to governance, socioeconomic development, and democratic principles.”

The Moody’s driven piece ends up accusing China of promoting undue political influence, nepotism, corruption, and elitism in the heart of Africa while lauding the higher principles of the western banking elite. No, I am not making this up. Talk about the pot calling the kettle black.

Other Cases

A previous report by me here on NEO showed unequivocally that China only owns about 15% of the total foreign debt owed by the top borrowers in Africa. Conversely, the World Bank and the Paris Club of lenders virtually own Sub-Saharan Africa lock-stock-and-barrel should strategic assets go to auction when payoff time comes. But the Moody’s report jogged me when I considered what the World Bank and others did to Eastern........

© New Eastern Outlook