African Development Bank chief criticizes opaque loans tied to Africa’s natural resources

By TAIWO ADEBAYO
Associated Press

Lagos, NIGERIA (AP) — The head of the African Development Bank is calling for an end to loans given in exchange for oil or critical minerals used in smartphones and electric car batteries. Such deals have left some African countries in financial crisis and have helped China control the extraction of critical minerals, such as cobalt, in Congo. Akinwumi Adesina said in an interview with The Associated Press that these arrangements come with a litany of problems, pointing to uneven negotiations where lenders typically dictate terms to cash-strapped African nations. He says a lack of transparency and potential for corruption also help create fertile ground for exploitation. At least 11 African countries have taken loans secured with their natural resources since the 2000s.