Mr Zhang Dejiang, chairman of the Standing Committee of China’s National People’s Congress (NPC), delivers a speech at the 134th Inter-Parliamentary Union (IPU) Assembly in Lusaka, capital of Zambia. PHOTO | DING LIN | XINHUA
By IVAN R. MUGISHA
IN SUMMARY
- In 15 years since 2001, China has funded over 50 development projects in Rwanda, which range from a $160 million debt cancellation in 2007, operationalisation of Cimerwa, Rwanda’s sole cement factory in 2009, as well as offering an interest-free loan of $219 million for the rehabilitation of Kigali’s road network in 2009.
- Top official of Chinese ruling party Zhang Dejiang last week visited Rwanda for talks with President Paul Kagame.
- In a paper titled “Chinese Assistance to Rwanda,” Vincent Byusa, a senior lecturer at the University of Rwanda, argues that China’s aid appears tied more to Beijing’s interests in developing new markets for its exports and new investment opportunities for its private businesses than to Rwanda’s development.
China continues to align itself in Africa by committing billions of dollars towards development projects on the African continent.
In 15 years since 2001, China has funded over 50 development projects in Rwanda, which range from a $160 million debt cancellation in 2007, operationalisation of Cimerwa, Rwanda’s sole cement factory in 2009, as well as offering an interest-free loan of $219 million for the rehabilitation of Kigali’s road network in 2009.
Last week in a show of its commitments to the co-operation between the two countries, Zhang Dejiang, the chairman of the standing committee of the National Peoples’ Congress, visited Rwanda and held discussions in-camera with President Paul Kagame touching on multimillion dollar investments, before flying back to China.
Mr Dejiang also met with different top government officials, and discussed advancing economic partnerships and strengthening ties between China’s ruling Communist Party and Rwanda Patriotic Front.
“We emphasised that our co-operation and relations are based on mutual respect, not plans imposed on us. So, we as a country have our own interests,” said Bernard Makuza, Rwanda’s Senate president in a statement.
China’s ambassador to Rwanda Pan Hejun, affirmed that unlike Western powers, China’s support to Rwanda has “no strings attached” and is solely based on development proposals put forward by Rwanda.
Experts, however, see things differently.
In a paper titled “Chinese Assistance to Rwanda,” Vincent Byusa, a senior lecturer at the University of Rwanda, argues that China’s aid appears tied more to Beijing’s interests in developing new markets for its exports and new investment opportunities for its private businesses than to Rwanda’s development.
According to recent records, in 2014 the value of Chinese exports to Rwanda surged to $106 million, ranging from electronic appliances to textile goods.
On the other hand, Rwanda’s exports to China stood at $91 million the same year, while overall bilateral trade increased to $207 million in 2014 from $34.3 million in 2006.
Mr Byusa says that China is not an emerging donor in the true sense of the word, and that it is the conducive investment climate in Rwanda that is attracting more investment from China.
China and Rwanda established diplomatic relations in 1971 and one of the former’s biggest initial investments in Rwanda was the construction of the $21 million Amahoro Stadium in 1989, which is still Rwanda’s largest to date.
Currently, one of China’s biggest garment firms — C&H — is setting up a factory in Kigali promising employment for over 3,000 people three years after completio
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