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African countries cancel Chinese projects blaming China’s lack of transparency and shoddy work of Chinese companies: Report

The Chinese companies in Africa face resistance from the African administrations as several Chinese projects get cancelled and actions are being taken against Chinese investment in Africa according to a report.

The Chinese companies in Africa face resistance from the African administrations as several Chinese projects got cancelled and actions are being taken against Chinese investment in Africa. According to the Singapore Post, the shoddy work of the Chinese companies is to blame that led to tensions among several countries in the African region.

The Beijing Everyway Traffic and Lighting Tech company’s contract to develop an intelligent traffic management system for the country was cancelled by Ghana while Felix Tshisekedi, president of the Democratic Republic of Congo (DRC), wanted the 2008 contract signed with China to be reviewed.

President Felix said he wanted better deals for the people of his country and indicated the exploitative nature of the Chinese saying, “Those with whom his country signed contracts are getting richer while DRC people remain poor.”

The Chinese companies had signed contracts in 2008 with the Congo President Joseph Kabila to construct roads, hospitals and bridges in the Democratic Republic of Congo in return for a 68% stake in the Sicomines venture of the country.

Lack of transparency and poor quality of work done by the Chinese companies was the main reason behind the cancellation of projects in Africa.

In Kenya, the high court cancelled the Standard Gauge Railway contract worth $3.2 billion when the court deemed the project illegal when it found that the contract prevented Kenya Railways from the procurement of Standard Gauge Railway.

John Hopkins University School of Advanced International Studies’ China-Africa Research Initiative report said that China signed 1,141 loan commitments with various African governments and state enterprises which were worth USD 153 billion. This was done during the period 2000 to 2019, according to the Singapore Post.

Most of these Chinese projects in Africa are getting suspended or abandoned by the African countries amidst the Covid-19 crisis and the inability of these African countries to pay back the huge loans taken from China. Hence in order to cut debt burdens, these countries decided to shut down the Chinese projects, most of which fall under Beijing’s Belt and Road Initiative 2013. The BRI (Belt and Road Initiative) is China’s attempt to integrate Asia Pacific, Africa and, Central and Eastern Europe through infrastructure developments.

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