Citibank dismisses China takeover

CITIBANK has dispelled assertions by some sections of society that China is taking over some of Zambia’s State-owned entities due to debt. The bank’s regional head for East Africa, Joyce-Ann Wainaina, said the advent of social media had given birth to fake news. On speculation that China was taking over some Stateowned entities in Zambia, Ms Wainaina said “There is fake news in the advent of twitter and everyone has become a journalist. Ms Wainaina said China was a force to reckon with in meeting Africa’s infrastructure needs that were inhibiting intra-Africa trade. She was speaking when she addressed journalists during the Middle East and Africa media and community summit in Dubai. Ms Wainaina said with the continent requiring about $100 billion to finance infrastructure gaps in the next 10 years, partners such as China were cardinal. “China-Africa engagement dates back to many years. The railway line (TAZARA) between Zambia and Tanzania was built (from 1970 to 1975) by China to enhance market connectivity and China is still stepping up to meet the infrastructure gaps,” she said. Ms Wainaina said China had been active in roads, rail and energy, among other sectors, which are key in the transformation of the continent. “Africa budgets can only meet 28 percent of its infrastructure needs but China has stepped up. Other multilateral institutions are also doing that. There is also a view that if Africa could fund more projects there would be an acceleration of intra-Africa trade,” she said. Ms Wainaina said the Chinese private sector was also present in Africa and was contributing to economic transformation. She, however, said African governments need to be clear on their selection of funding and ensure that the funding goes to intended projects.