Head of the African Development Bank called for an end to loans in exchange for oil or critical minerals, which helped countries like China control vast resources in the continent. In an interview with the Associated press, AFDB chief Akinwumi Adesina explained how such loans lead to undervaluing natural resources of African countries and further erode financial stability prospects in these countries. “If you have minerals or oil under the ground, how do you come up with a price for a long-term contract? Linking resources from critical minerals- notably those used in smartphones and EV batteries for example- to loans, was a method used by lenders to secure loan payment. A China-Congo loan was linked to cobalt helping Beijing secure a critical mineral for EV batteries and energy transition.
