China forgives Cameroon of $78million debt

The goverment of China announced that it has forgiven Cameroon of about $78 million of their $5.7bn debt. The move forms part of Chinese support to help ease economic hardship in the central African country.

The announcement was made late last week after a meeting between President Paul Biya of Cameroon and Yang Jiechi, a special representative of the Chinese President Xi Jinping in Yaounde.

Some analysts have looked into the issue and concluded that it could be possible that the government of China are interested in Africa’s pool of wealth and want a greater share in the enormous natural resources in Cameroon which are essential to feed its home industries.

Economist, Gnitedem Aries in an interview with the BBC was quoted saying, “China want to control the sub regional market and Cameroon is the gate way, it is possible they want a share in the vast enormous natural resources of Cameroon”.

Cameroon have joined a host of other African countries who depend on China for loans to largely finance infrastructure projects. Analysts have raised issues about the non-sustainability of these loans.

The United States got into a diplomatic spat with China over its financial dealings with Africa stating that Africa was been shackled with Chinese money.