This archive report was first published on 28 June 2020.
US Secretary of State Mike Pompeo has accused China of giving Africa 'empty promises' on debt relief, sparking a heated exchange between the two nations.
On June 24, 2020, Mr. Pompeo released a strongly worded statement accusing China of not being committed to the Debt Service Suspension Initiative (DSSI).
He stated, 'At last week's China-Africa Summit, we unfortunately saw more empty promises and tired platitudes from the Chinese Communist Party (CCP)... The CCP needs to move beyond vague public statements and start to fully and transparently implement the DSSI in accordance with its G20 commitments.'
According to the World Bank, EAC countries could save up to $1 billion in temporary debt relief offered by rich countries, freeing up resources needed to help finance emergency response to the Covid-19 pandemic.
China reacted swiftly to the statement, branding President Donald Trump's top diplomat a 'liar.'
China's Foreign Ministry spokesperson Zhao Lijian said, 'Sec Pompeo is telling lies and smearing China whenever he gets a chance. But lies repeated a thousand times are still lies. It's just his nature to 'lie, cheat, and steal' as he himself admitted.'
The verbal exchange exposes the widening cracks between the US and China.
Mr. Pompeo has repeatedly accused China of overloading Africa with unsustainable debt, claims that the world's second-biggest economy has strongly denied.
The DSSI plan is worth about $11.5 billion to help poor countries 'manage the severe impact of the Covid-19 pandemic.'
Kenya is listed as being potentially the biggest beneficiary, eligible for $802.6 million temporary debt relief.
Tanzania and Uganda had by June 25, 2020, been listed in on the bulletin as being the only participants in the initiative among EAC member states.
