China cancels Botswana’s P27m loan
World’s second biggest economy prepares to hold FOCAC Summit in Senegal in 2021
China has cancelled an outstanding amount of approximately P27 million from an interest- free loan that the country had taken from the world’s second biggest economy.
The cancellation comes after China and Botswana signed the Protocol on Exemption of Interest Free Loan Debt in October 7, 2020.
Signing on behalf of the two governments were Botswana’s finance and economic development minister, Dr. Thapelo Matskeka and Chinese Ambassador Dr. Zhao Yanbo.
According to a statement from the ministry of finance and economic development, the interest free loan exempted from payment had an outstanding amount of approximately P27 million or RMB Yen 15, 570, 380.
A brief from the embassy said the debt relief is designed to implement China’s commitment to giving “greater support” to countries hit hard by the coronavirus.
It is anticipated that the debt relief will reduce Botswana’s financial stress and help her focus resources on the fight against the pandemic as well as economic recovery.
It is not the first time that China cancels Botswana’s loans. During his state visit to China and participation at the 3rd Summit of FOCAC which was held under the theme ‘ China and Africa: Toward an Even Stronger Community with a Shared Future through Win- Win Cooperation’ from 3rd to 4th September 2018, President Dr. Mokgweetsi Masisi extracted some concessions from China which included a grant of P340 million and a debt cancellation for P80 million.
The next Forum on China– Africa Cooperation ( FOCAC) Summit will be held in Senegal in 2021, with the singular aim to promote the realisation of the common goals of the two sides.
On the occasion of the 20th anniversary of FOCAC, Chinese President Xi Jinping and Senegalese President who is also FOCAC co- chair Macky Sall exchanged congratulatory messages on 12th October and recommitted to joining hands to addressing various challenges especially during this time when COVID- 19 pandemic has severely ravaged the world economy.
For Botswana, FOCAC represents the framework through which both nations can “deepen and strengthen” their relations and the mutual admiration for one another.
Set up in Beijing, China 20 years ago, FOCAC has become a significant mark of China- Africa cooperation, an important and dynamic platform for dialogue between China and Africa, and an effective mechanism for practical cooperation, as well as an important model and banner of South- South cooperation, according to the Director of Political Section at the Chinese embassy on Gaborone, Li Han.