China Summit: Biya gains on military, loses in economy.

Beyond being the continent's major bilateral lender, China has also sought to use FOCAC to counter growing economic and military competition in the continent with the United States, Russia, the European Union, Japan and others.

For President Biya, it would appear he achieved more for the military than the domain of the country's economy, which, in the first place is limping.

While in China, he is reported to have requested for increased military cooperation. After an audience with his Chinese counterpart, Xi Jinping, they agreed to work to elevate Yaounde-Beijing relations to the level of a comprehensive strategic partnership.

“I had cordial talks today with H.E Xi Jinping. Evoking the stability of friendship and cooperation between Cameroon and China, we promised to work to elevate these relations to the level of a comprehensive strategic partnership,” wrote President Paul Biya on his X (formerly twitter) platform.

He was also quoted as saying: “My country needs modern and varied equipment in the military field, as well as technical assistance for their operation and maintenance”.

The military domain made some gains for Cameroon at the summit, but for the economy, it remains questionable with debts that Cameroon has been struggling to pay.

Cameroon settled debts totaling 148.2 billion FCFA to the Chinese Eximbank in the first three months of this year, as reported by the debt management agency, the Autonomous Sinking Fund (CAA). 

Of this amount, 34.7 billion FCFA represented interest payments, with 113.5 billion FCFA as the principal repayment. These figures mark the largest debt and interest repayments, made by Cameroon since the beginning of 2024 to all categories of creditors.

The Chinese bank emerged as the top beneficiary of Cameroon's external debts by the end of March 2024, surpassing all multilateral institutions. Notably, the World Bank, which received 17.5 billion FCFA between January and March 2024, including 5.1 billion FCF in interest. 

The IMF received 17.1 billion FCFA with interest of 2.8 billion FCFA, while the African Development Bank (AfDB) was paid 20.1 billion FCFA, including 9.3 billion FCFA in interest.

Unlike the IMF, the World Bank and African Development Bank, in August made a gesture by writing off Cameroon's debt of $78 million, which is about 51.15 billion FCFA.

The Chinese said the cancellation, which paled into insignificance considering the huge outstanding debts and interest, was in support to help ease economic hardship in Cameroon.

The cancelled debt was due to be repaid in 2018, as part of the country’s estimated $5.7bn total debt burden which should explain Yaounde’s difficulties in paying back debts with interest.

Economists have expressed reservations about Beijing’s motives, saying China uses such dire straits by African borrowers to get preferential access to natural resources. 

“China wants to control the sub-regional market and Cameroon is the gateway,” economist Ariel Gnitedem told the BBC.

“It is possible they also want a greater share in the enormous natural resources in Cameroon, which are essential to feed its home industries,” he added.

Cameroon, like most other African countries, continues to turn to China for loans to largely finance infrastructure projects. Analysts have raised issues about the non-sustainability of these loans.

Many African governments have routinely rejected the concerns, stating that the relationship was based on mutual respect for both parties.

But the United States is on record to have had a diplomatic spat with China over its financial dealings with Africa, stating that Africa is being shackled with Chinese money, which it termed a "debt trap".

Unlike with the Bretton Woods Institutions where the United States and its Western allies have been controlling influence and even use it to subtly demand accountability and democracy, China is indifferent to such conditions.

That should explain why despite the deteriorating economic infrastructure in the crucial areas of electricity, health, water and roads, the major achievement for Cameroon at the Chinese Summit was the modernisation of the military.

The military needs ultramodern equipment, no doubt, given the challenges in the North West, South West and Far North Regions, but social amenities and initiatives that create jobs for a teeming unemployed youth population should have been given prominence, including more cancellation of debts that entangle economic growth.

This story was first published in The Guardian Post issue N0:3224 of Monday September 9, 2024