TAIPEI (Taiwan News) — Diplomats, international and local experts discussed problems brought to Africa by China’s Belt and Road Initiative (BRI) and potential solutions during a symposium on Wednesday (July 31) .

Former U.S. Ambassador to Zambia Eric Schultz pointed out how the BRI lured African nations with investments, then trapped the countries in debt. He suggested collective bargaining as a way for African nations to escape the debt trap.

Taiwan’s representative to Somaliland Allen Lou (羅震華) touted the Taiwan-Somaliland model as an alternative to the BRI, according to the Liberty Times. Somaliland Ambassador to Taiwan Mohamed Hagi echoed his view and illustrated China’s carrot-and-stick strategy based on past negotiations between the two countries.

Schultz opened by noting that under Zambia’s pro-China Patriotic Front government, Chinese loans to Zambia grew from zero in 2011 to US$10 billion (NT$327.86 billion) in 2021, accounting for 50% of Zambia’s GDP.

He explained the loans did not benefit Zambia because the BRI’s terms specified the Zambian government could only contract Chinese firms for these projects, per CNA. The Chinese firms imported labor and technical experts from China, preventing Zambia from easing its unemployment problem with the public spending program or gaining technical expertise.

Schultz urged the U.S. and its democratic allies, including Taiwan, to press China for lower interest rates, debt forgiveness, or better terms, as a form of relief. He said one solution would be helping band African nations together so they could have greater bargaining power against China as a group.

Schultz also recommended expanding democratic rule, as well as influence and commerce, to African nations. He emphasized that democratic nations should not simply impose these values but encourage them with the aid provided.

Lou discussed how the Taiwan model is built on mutual benefits rather than the debt trap left by the BRI. He named agriculture, medical care, higher education, and information and communication technologies as areas where Taiwan cooperated with Somaliland.

Somaliland Ambassador to Taiwan Mohamed Hagi agreed with Lou’s assessments of the two nations’ diplomatic relations. He referred to Somaliland’s efforts to facilitate contact between Taiwan and other African nations as a benefit Somaliland provided in their relationship.

Hagi also commented on Somaliland’s past experience with China’s carrot-and-stick strategy. He recalled how China demanded Somaliland downgrade Taiwan’s representative office to an office of trade, change “Taiwan” to “Taipei,” and forbid anyone from flying the Taiwan flag in Somaliland.

Seeing Somaliland unconvinced, China immediately tried to sweeten the deal with promises to build roads, airports, and other infrastructure while putting pressure on the Somaliland government by squeezing the Somaliland business community, he said.

The Taiwan Inspiration Association organized the symposium, “China’s Bad Governance Model for Africa — Alternative Visions,” focusing discussion on China’s policy in Africa and ways to counter it.