US won't dictate to us - Schlettwein Finance minister Calle Schlettwein says it is none of the United States' business how Namibia runs its fiscal affairs, while also dismissing reports that China is trying to “recolonise” Africa through the provision of loans.
Schlettwein made it clear that China is not forcing Namibia or any African nation into any agreement or loan.
He said whatever agreements are in place or will be entered into between Namibia and China, these are done on a win-win basis.
According to Schlettwein, Chinese President Xi Jinping made it clear during Namibia's official state visit recently that he is not imposing China on Namibia to get access to raw materials.
Schlettwein was responding to claims by former US Secretary of State Rex Tillerson, who cautioned African countries against taking Chinese loans.
Tillerson recently warned African nations against accepting loans from the Asian superpower.
He said African countries must “carefully consider” their agreements with China, saying these forced African countries into dependency and harm growth.
“Chinese investment does have the potential to address Africa's infrastructure gap, but its approach has led to mounting debt and few, if any, jobs in most countries,” Tillerson said.
“When coupled with the political and fiscal pressure, this endangers Africa's natural resources and its long-term economic political stability.”
Schlettwein described the advice by Tillerson as biased. He said it was wrong to assert that China is recolonising Africa, because it had never previously colonised Africa.
He said the loans China is offering are accepted and agreed upon between the two governments.
“They are not imposing anything on Africa, which by the way the World Bank is doing.”
According to him the World Bank dictates to country's how financing must be spent.
He stressed that China is offering loans to countries because it sees their need.
“It is none of their business how our fiscal affairs are run,” Schlettwein said in reference to Tillerson and the US.
Attorney-General Albert Kawana added that African countries are no longer minors to be told what to do and what not to do.
He said developed countries can no longer treat Namibia the way they want to. “We are not minors anymore. We will not accept it. We are equal. When we go to China, we are treated as equals. Nobody must come here and lecture us,” said Kawana.
He added that loans from the International Monetary Fund (IMF) and the World Bank have brought nothing but poverty and misery to developing nations.
Schlettwein added any loan Namibia takes up must have benefits for the country and the economy.
“There must be a real gain for the economy. It is a good thing to take up cooperation financing with China, we must just make sure it is satisfying our interests.”
He further pointed out that the investment by China into the Husab uranium mine has created 3 000 jobs and is the single largest foreign investment into Namibia.
According to Schlettwein the production at the mine contributes 5% to Namibia's GDP and added the country's GDP has grown because of this investment.
“People working there are paying taxes and the mine is paying royalties to government, while it is also a co-owned mined,” said Schlettwein.
Over the years, China has pumped billions into infrastructure projects in Africa, but critics say there is often little benefit for local economies, as Chinese firms and labour build the roads and railway networks in these countries.
ELLANIE SMIT
Schlettwein made it clear that China is not forcing Namibia or any African nation into any agreement or loan.
He said whatever agreements are in place or will be entered into between Namibia and China, these are done on a win-win basis.
According to Schlettwein, Chinese President Xi Jinping made it clear during Namibia's official state visit recently that he is not imposing China on Namibia to get access to raw materials.
Schlettwein was responding to claims by former US Secretary of State Rex Tillerson, who cautioned African countries against taking Chinese loans.
Tillerson recently warned African nations against accepting loans from the Asian superpower.
He said African countries must “carefully consider” their agreements with China, saying these forced African countries into dependency and harm growth.
“Chinese investment does have the potential to address Africa's infrastructure gap, but its approach has led to mounting debt and few, if any, jobs in most countries,” Tillerson said.
“When coupled with the political and fiscal pressure, this endangers Africa's natural resources and its long-term economic political stability.”
Schlettwein described the advice by Tillerson as biased. He said it was wrong to assert that China is recolonising Africa, because it had never previously colonised Africa.
He said the loans China is offering are accepted and agreed upon between the two governments.
“They are not imposing anything on Africa, which by the way the World Bank is doing.”
According to him the World Bank dictates to country's how financing must be spent.
He stressed that China is offering loans to countries because it sees their need.
“It is none of their business how our fiscal affairs are run,” Schlettwein said in reference to Tillerson and the US.
Attorney-General Albert Kawana added that African countries are no longer minors to be told what to do and what not to do.
He said developed countries can no longer treat Namibia the way they want to. “We are not minors anymore. We will not accept it. We are equal. When we go to China, we are treated as equals. Nobody must come here and lecture us,” said Kawana.
He added that loans from the International Monetary Fund (IMF) and the World Bank have brought nothing but poverty and misery to developing nations.
Schlettwein added any loan Namibia takes up must have benefits for the country and the economy.
“There must be a real gain for the economy. It is a good thing to take up cooperation financing with China, we must just make sure it is satisfying our interests.”
He further pointed out that the investment by China into the Husab uranium mine has created 3 000 jobs and is the single largest foreign investment into Namibia.
According to Schlettwein the production at the mine contributes 5% to Namibia's GDP and added the country's GDP has grown because of this investment.
“People working there are paying taxes and the mine is paying royalties to government, while it is also a co-owned mined,” said Schlettwein.
Over the years, China has pumped billions into infrastructure projects in Africa, but critics say there is often little benefit for local economies, as Chinese firms and labour build the roads and railway networks in these countries.
ELLANIE SMIT