African Development Bank Chief Slams Opaque Loans Tied To Africa’s Natural Resources

The head of the African Development Bank (AfDB) has launched a scathing attack on a shadowy lending practice that critics say is handing Africa’s vast mineral wealth to China, and other western powers, leaving some countries drowning in debt. Akinwumi Adesina called for an immediate end to loans offered in exchange for control over the continent’s rich oil reserves and critical minerals like cobalt, essential components in smartphones and electric car batteries. These opaque deals, Adesina argues, have become a double-edged sword. While appearing to offer much-needed capital for infrastructure projects, they often lock African nations into unfair contracts and leave them beholden to foreign powers. “They are just bad,“ Adesina bluntly stated in a recent interview, highlighting the inherent difficulty of accurately valuing resources still buried underground. “How do you come with a price for a long-term contract?“ he questioned, emphasizing the inherent challenges in such agreements. Traditionally, these resource-backed loans have been promoted as a win-win situation. African countries gain access to financing for development projects, while lenders mitigate risks by tying repayment to future exports of valuable resources. However, these criticisms shed light on the potential pitfalls of such arrangements, particularly their lack of transparency and potential for exploitation. Before we dive into our topic today, if you haven’t already, please consider subscribing to our channels and ringing the bell to be notified about all our exciting future videos. Countries like Angola (oil) and Zambia (copper) have become heavily reliant on loans from China, and global western nations secured by their resources. The problem? Falling commodity prices make debt repayment difficult, limiting funds for development outside the resource sector. This creates a vicious cycle, forcing countries to prioritize resource extraction over long-term economic diversification. ▬▬▬▬▬▬▬▬▬ ✅SUPPORT US /AFFILIATE LINKS Use this affiliate link for your purchases at #MIZIZI International - Support our channel - PayPal: newafricachannel(at) Follow us on Instagram - Follow us on Twitter - Join us on Facebook - ▬▬▬▬▬▬▬▬▬ ✅COPYRIGHT DISCLAIMER The New Africa Channel doesn’t fully own some of the materials compiled in its videos. It belongs to people or organizations who ought to be respected. If used, it falls under the following provisions: Copyright disclaimer section 107 of the Copyright Act 1976. “Fair use“ is allowed for purposes such as criticism, comment, news reporting, teaching, scholarships, and research. ✅ If you are the owner of the materials used in this video, contact us, and we will follow your request immediately: info(at) ▬▬▬▬▬▬▬▬▬ ✅COMMENTING POLICY Keep your comments and posts appropriate, helpful, and relevant. Any offensive, disrespectful, harmful, threatening, vulgar, obscene, or inappropriate content will be removed immediately. Spamming, vandalizing, promoting, and advertising are also not allowed. While we encourage free speech and open discussion, attacking or harassing other users is not tolerated. Repeat violators of this policy will be reported and may face a ban. ▬▬▬▬▬▬▬▬▬ #AfricaNews #TopAfricaNews #News #NewsAfrica #AfricaNews