AU Suggests Sending $$$ to Africa without Stipulations

The African Union (AU) is urging African countries to rely more upon Chinese investment for development as a result of stalled funds from Western nations and the World Bank.

Maxwell Mkwezalamba, the AU’s economic chief, said Africa must end its reliance on Western money.

"For Africa‘s development and integration we have depended on the Western world – we cannot continue to proceed like this," Mkwezalamba told reporters. "We need to diversify our partners that we work with and hence for us, working with China is something that we have welcomed," he said at the AU summit in Uganda.

Mkwezalamba said restrictive conditions placed on loans by some of its traditional Western partners and groups such as the World Bank have driven African nations into the arms of China. Yet many studies have shown that international aid to Africa has only kept the continent from developing. Analysts say a major reason for this is the corruption levels prevalent within many African governments and the ambiguity or nonexistence of strict monitoring procedures for fund allocation.

"By getting support from China and other countries we strengthen our position in dealing with institutions such as the World Bank, which tend to impose huge conditions," Mkwezalamba said. "The resources tend to come very slowly." If Mkwezalamba thinks this is the major reason Africa should turn to China, then why need funding whatsoever from any outside party if it will never be used for the continent’s so-called development?

"They tell you that you are going to get $100 million today but then you don’t get the $100 million until after maybe two years because the whole question of processing the loan takes a long time," he said.

Mkwezalamba said Africa’s increasing outreach to China in place of traditional development partners would create friction.

The most successful investors do not readily dole out money to a seemingly great idea without further investigation and/or proof of dispersed capital since ultimately, it is their money. Therefore, it is hard to imagine why Mkwezalamba would expect funds to just flow freely to Africa, or any nation, without a system put forth to ensure proper allocation of the funds especially considering past experiences. With such previous experience as a country economist for the World Bank, among other roles, how could Mkwezalamba imply such a tactic? Then again, it isn’t his money. It’s always easier to gamble when playing with someone else’s dollar.

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