THE World Bank has expressed concern about some of the loans China has been giving to developing economies in Africa, calling for more transparent “terms and conditions”.

The World Bank’s concern follows the inability of some countries, including Ghana and Zambia, to repay their debts to Beijing owing to steep increases in interest rates since most of the borrowing is done in foreign currencies such as United States (US) dollars or euros.

“It is a double whammy and it means that [economic] growth is going to be slower,” Bank President David Malpass said.

He also warned African governments against offering collateral as an inducement to make a loan because it locks it up for generations.

“That’s been happening with China,” the World Bank chief argued.

However, China’s Foreign Ministry Spokesperson Mao Ning, said during a recent press interview that Beijing “respects the will of relevant countries and has never forced any party to borrow money”.

“China has focused our outbound investment and financing cooperation on infrastructure and production to help developing countries enhance their capacity for self-generated and sustainable development.

“This has contributed to these countries’ economies and people’s livelihoods and delivered tangible benefits to the local communities.

“China has always carried out investment and financing cooperation with developing countries based on the principle of openness and transparency,” she said.

Ning added that China will not attach any political conditions to loan agreements, and does not seek any political self-interest.

A new study led by the Kiel Institute for the World Economy showed that globally China lent $185 billion in bailouts to 22 developing countries between 2016 and 2021.

As U.S.-China competition for Africa intensifies, President Joe Biden has ramped up efforts to reengage with African countries after last year’s US-Africa summit.

US Vice-President Kamala Harris visited three African countries last week, pledging financial commitments to the continent and Biden has also said he intends to visit Africa this year as well.

“My visit has convinced me more than ever, that we must all around the globe appreciate and understand the importance of investing in African ingenuity and creativity,” Harris said.

President Biden has pledged to work with the United States Congress to invest $350 million in various African initiatives and facilitate nearly half a billion dollars in development financing, to make sure that people across the continent can participate in the digital and global economy.