Johanna Hipangelwa BA(Hons)
’This article critically examines China’s ‘debt-trap diplomacy’ in the context of Namibia. The essay explores the historical background of China-Namibia relations, assesses the volume of Chinese loans and investments in Namibia, and analyses the potential risks and benefits associated with these financial relationships.
It further assesses the effects of the ‘debt-trap diplomacy’ on Namibia’s economic and political sovereignty, emphasising the necessity of stable and balanced international ties.
Over the past few decades, Namibia-China relations have experienced substantial expansion and development, marked by extensive economic collaboration and diplomatic interaction.
It is more important to comprehend the dynamics of China’s relationship with Namibia as its influence continues to grow on a global scale. Namibia, a resource-rich nation in southwest Africa, has been looking for outside investment to support its development and prosperity.
China, on the other hand, has become a significant player in the construction of infrastructure around the world because of the Belt and Road Initiative (BRI).
However, there are worries about the possible hazards connected to China’s lending policies and how they can affect Namibia’s long-term financial stability.
Therefore, understanding Namibia-China relations has gotten significantly more difficult due to China’s ‘debt-trap diplomacy’.
This tactic alludes to China’s practice of lending large sums of money to developing nations, which frequently leaves these countries with a crippling debt load.
Critics contend that this strategy allegedly gives China disproportionate influence over-indebted nations, potentially eroding those nations’ sovereignty. Like other African countries, Namibia has benefited from Chinese funding for the development of its infrastructures.
While there is little doubt that these investments have helped Namibia’s efforts to modernise and build its economy, there are rising worries about the long-term effects of such high borrowing.
The emphasis on financing substantial infrastructure projects, which may not always produce quick economic rewards, is a crucial component of China’s ‘debt-trap diplomacy’.
This strategy may result in a cycle of debt as debtor countries (Namibia) struggle to make enough money from these endeavours to pay back their loans.
Historically, the war for freedom and the succeeding post-independence era provided the foundation of Namibia-China ties. After a protracted and difficult liberation fight, Namibia finally achieved independence from South Africa (The Apartheid era) in 1990.
China significantly contributed to Namibia’s freedom struggle by giving the Swapo liberation movement both political and material backing (Sino-African Relations, 2023). Following independence, Namibia and China established bilateral ties, with both nations pledging to strengthen their economic cooperation.
China has grown to be one of Namibia’s main trading partners, with most of its investments going into industries including telecommunications, infrastructure development and mining. These relationships have developed throughout time to include numerous fields of collaboration, such as education, agriculture, healthcare and tourism. The Chinese government has provided technical help and training programmes in addition to scholarships for Namibian students to study there.
The construction of roads, trains, ports and other infrastructure projects in Namibia was greatly aided by Chinese businesses. These initiatives have improved the country’s internal connections and its capacity for regional trade.
Chinese investment has also played a significant role in the growth of Namibia’s mining industry by funding exploratory efforts for a variety of resources, including copper and uranium.
However, issues with China’s ‘debt-trap diplomacy’ have come up within this framework for economic cooperation.
Concerns of the ‘debt-trap diplomacy’
The connection between Namibia and China has sparked worries about the risks of becoming caught in a debt trap. The phrase ‘debt-trap diplomacy’ describes a scenario in which a borrower country incurs significant debt to another country, creating political and economic vulnerabilities.
Concerns exist regarding
the potential long-term effects
of Chinese loans and investments in Namibia. One main worry is that Namibia might end up with an unmanageable debt load.
Furthermore, critics argue that this dependence on China may result in compromised sovereignty and political influence. The relationship between Namibia and China has been characterised by an increasing reliance on Chinese investments.
On one hand, Chinese investments have contributed to infrastructure development in Namibia, such as the construction of roads, railways and ports as alluded to earlier; issues about environmental sustainability and labour standards associated with some Chinese projects have been critical to the discourse. Despite China’s contribution to Namibia’s development, the country continues to become economically dependent on China.
Way forward: Namibia-China relations
In summation, it is pivotal to adopt a balanced perspective when analysing Namibia-China relations, particularly in the context of China’s ‘debt-trap diplomacy’ discourse.
While concerns about China’s growing influence and potential debt burdens are valid, it is essential to recognise the mutual benefits that both countries derive from their partnership. Namibia has greatly benefited from Chinese investments in critical infrastructure projects, such as roads, railways, and energy facilities.
These developments have contributed to Namibia’s economic growth and helped address its developmental challenges. Additionally, China’s support has enabled Namibia to diversify its economy and reduce its reliance on traditional sectors.
However, it is important and cannot be emphasised enough for Namibian policymakers to ensure transparency in their dealings with China and carefully evaluate the terms of any loan agreements.
By doing so, they can mitigate potential risks associated with debt accumulation while maximising the advantages of this bilateral relationship. Thus, I argue for a more transparent relationship between China and Namibia that allows for the early detection of potential risks associated with the bilateral agreements, during their interactions.
– Additional reporting from Sino-African relations.
* Johanna Hipangelwa is a BA(Hons)
Political Science Student at the University of Namibia. Reach her at johannahipangelwa01@gmail.com