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Skip to main content Open Main Menu Navigation Open SearchPartly Cloudy icon 70º Go to the WPLG homepage Sign In Search * * News * Watch Live * Traffic * Local 10 Investigates * This Week In South Florida * Dirty Dining/Clean Plate * Digi Shorts * National * Vote 2024 * Politics * Cuba * Animal Advocate * Don't Trash Our Treasure * Health * Weird News * * Weather * Alerts * Hurricane * Florida Pins * Hollywood Beach Cam * Miami Downtown Cam * Key West Cam * Miami Beach Cam * Fort Lauderdale Cam * Pembroke Park Cam * * Sports * Dolphins * Heat * Marlins * Panthers * Inter Miami CF * Miami Hurricanes * Olympics * * Features * SoFlo Shows * SoFlo Health * SoFlo Taste * SoFlo Recipes * SoFlo Home Project * UHealth * Pets * Food * Fresh * Community * Mom to Mom * NEXTGEN TV * Tech * Travel * Money * * Entertainment * TV Listings * Events Calendar * Concerts * Contests & Rules * H&I TV * MeTV * * Español * * Newsletters * * Contact Us * Meet the Team * Jobs at WPLG * Advertise with us * News * Weather * Sports * Features * Entertainment * Español * Newsletters * Contact Us * News * Weather * Sports * Features * Entertainment * Español * Newsletters * Contact Us WEATHER ALERT A rip current statement in effect for Coastal Broward Region Show Breaking News Bar Close BUSINESS -------------------------------------------------------------------------------- Taiwo Adebayo Associated Press Published: March 12, 2024 at 6:06 AM Updated: March 15, 2024 at 6:09 PM Tags: environment, World news, Climate, Business -------------------------------------------------------------------------------- Sign up for our Newsletters Sign Up -------------------------------------------------------------------------------- LATEST NEWS -------------------------------------------------------------------------------- No description available 4 minutes ago THIS WEEK IN SOUTH FLORIDA PODCAST: DEC. 22, 2024 Read full article: This Week In South Florida Podcast: Dec. 22, 2024 No description available 7 minutes ago THIS WEEK IN SOUTH FLORIDA: 10 NEW STATE LAWS GO INTO EFFECT 2025 Read full article: This Week In South Florida: 10 new state laws go into effect 2025 No description available 18 minutes ago THIS WEEK IN SOUTH FLORIDA: ALLYN KILSHEIMER Read full article: This Week In South Florida: Allyn Kilsheimer No description available 20 minutes ago THIS WEEK IN SOUTH FLORIDA: STEPHEN K. TALPINS Read full article: This Week In South Florida: Stephen K. Talpins BUSINESS AFRICAN DEVELOPMENT BANK CHIEF CRITICIZES OPAQUE LOANS TIED TO AFRICA'S NATURAL RESOURCES Taiwo Adebayo Associated Press Published: March 12, 2024 at 6:06 AMUpdated: March 15, 2024 at 6:09 PM Tags: environment, World news, Climate, Business Full Screen1 / 5 Previous photo Next photo Akinwumi Adesina, President African development bank, speaks during an interview with The Associated Press in Lagos Nigeria, Tuesday , March. 5, 2024. The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries, deals that have helped China control mineral mining in places like Congo and have left some African countries in financial crisis. (AP Photo/Sunday Alamba) Akinwumi Adesina, President African development bank, speaks during an interview with The Associated Press in Lagos Nigeria, Tuesday , March. 5, 2024. The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries, deals that have helped China control mineral mining in places like Congo and have left some African countries in financial crisis. (AP Photo/Sunday Alamba) Akinwumi Adesina, President African development bank, speaks during an interview with The Associated Press in Lagos Nigeria, Tuesday , March. 5, 2024. The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries, deals that have helped China control mineral mining in places like Congo and have left some African countries in financial crisis. (AP Photo/ Sunday Alamba) Akinwumi Adesina, President African development bank, speaks during an interview with The Associated Press in Lagos Nigeria, Tuesday , March. 5, 2024. The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries, deals that have helped China control mineral mining in places like Congo and have left some African countries in financial crisis. (AP Photo/Sunday Alamba) Akinwumi Adesina, President African development bank, speaks during an interview with The Associated Press in Lagos Nigeria, Tuesday , March. 5, 2024. The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries, deals that have helped China control mineral mining in places like Congo and have left some African countries in financial crisis. (AP Photo/Sunday Alamba) Copyright 2024 The Associated Press. All rights reserved Akinwumi Adesina, President African development bank, speaks during an interview with The Associated Press in Lagos Nigeria, Tuesday , March. 5, 2024. The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries, deals that have helped China control mineral mining in places like Congo and have left some African countries in financial crisis. (AP Photo/Sunday Alamba) LAGOS – The head of the African Development Bank is calling for an end to loans given in exchange for the continent's rich supplies of oil or critical minerals used in smartphones and electric car batteries. “They are just bad, first and foremost, because you can’t price the assets properly,” Akinwumi Adesina said in an interview with The Associated Press in Lagos, Nigeria, last week. “If you have minerals or oil under the ground, how do you come up with a price for a long-term contract? It’s a challenge.” Recommended Videos -------------------------------------------------------------------------------- Recommended Videos 1 / 6 JPMorgan Chase acquires First Republic Bank Read More 3K Video Player is loading. Play Video Unmute Duration 2:19 / Current Time 0:00 Advanced Settings Loaded: 0% 0:00 Remaining Time -2:19 FullscreenPlayRewind 10 SecondsUp Next Next Stay This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Share Settings Playback Speed Normal Closed Captions Off Replay the list TOP ARTICLES * Powered by AnyClip * Privacy Policy * Keyboard Shortcuts JPMorgan Chase acquires First Republic Bank -------------------------------------------------------------------------------- Linking future revenue from natural resource exports to loan paydowns is often touted as a way for recipients to get financing for infrastructure projects and for lenders to reduce the risk of not getting their money back. Such deals that have helped China gain control over mineral mining in places like Congo and have left some African countries in financial crisis. The shift to renewable energy and electric vehicles has caused a spike in the demand for critical minerals, driving these kind of loans. That includes a China-Congo deal that strengthens Beijing’s position in the global supply chain for EVs and other products as it taps into the world's largest reserves of cobalt, a mineral used to make lithium-ion batteries, in the impoverished central African country. Adesina, whose Abidjan, Ivory Coast-based institution helps finance development in African countries, said these arrangements come with a litany of problems. He highlighted the uneven nature of the negotiations, with lenders typically holding the upper hand and dictating terms to cash-strapped African nations. This power imbalance, coupled with a lack of transparency and the potential for corruption, creates fertile ground for exploitation, Adesina said. “These are the reasons I say Africa should put an end to natural resource-backed loans," Adesina said. He pointed to a bank initiative that helps "countries renegotiate those loans that are asymmetric, not transparent and wrongly priced.” Adesina said loans secured with natural resources pose a challenge for development banks like his and the International Monetary Fund, which promote sustainable debt management. Countries may struggle to get or repay loans from these institutions because they have to use the income from their natural resources — typically crucial to their economies — to pay off resource-tied debts, he said. Adesina specifically mentioned Chad’s crippling financial crisis after an oil-backed loan from commodity trader Glencore left the central African nation using most of its oil proceeds to pay off its debt. A Glencore spokesperson did not immediately respond to a request for comment. After Chad, Angola and the Republic of Congo approached the IMF for support, the multilateral lender insisted on the renegotiation of their natural resource-backed loans. At least 11 African countries have taken dozens of loans worth billions of dollars secured with their natural resources since the 2000s, and China is by far the top source of funding through policy banks and state-linked companies. Western commodity traders and banks, such as Glencore, Trafigura and Standard Chartered, also have funded oil-for-cash deals, notably with the Republic of Congo, Chad and Angola. Standard Chartered didn't immediately respond to an email seeking comment, while Trafigura pointed to its 2020 report called “Prepayments Demystified,” which says that “trading firms are enabling production that would otherwise not be possible — thus underpinning economic growth, job creation and the generation of fiscal revenues in the countries concerned.” Adesina said there was no “fixation” on one country as being behind these types of loans when asked about criticisms over China’s lending backed by oil; critical minerals such as cobalt and copper used in electric vehicles and other products; and bauxite, the main mineral in aluminum manufacturing, which has been used in China’s recent resource-backed loan contracts with Guinea and Ghana. “It is not about one country or the other; any country can exploit when you don’t know what you are doing,” he said, adding, “The capacity to negotiate at the country level, the capacity to plan, the capacity for debt management is very important.” Mao Ning, spokesperson for China’s Ministry of Foreign Affairs, told reporters last year that Beijing operates with the “principle of transparency and openness” in relations with Africa. Congo has been looking to review the infrastructure-for-minerals agreement it signed with China in 2008 over concerns it gets too few benefits from the arrangement. That grants Chinese firms Sinohydro and China Railway Group a 68% stake in a joint venture for copper and cobalt with Congo’s state mining company, Gecamines. Last year, Congo's state auditor demanded China's infrastructure investment commitment be increased to $20 billion from the original $3 billion to match the value of the resources sold by the state under the deal. China rejected the auditor's report. Adesina, a former Nigerian minister for agriculture, said the African Development Bank's new Alliance for Green Infrastructure in Africa aims to mobilize $10 billion to help countries finance “bankable” sustainable infrastructure, including in the energy and transport sectors, which could limit the allure of problematic financing. ___ This story was first published on March 13, 2024. It was updated on March 15, 2024 to make clear that while Akinwumi Adesina, the head of the African Development Bank, is calling for an end to loans given in exchange for the continent’s rich supplies of oil or critical minerals, he did not single out any particular country that funds such loans. ___ The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission. -------------------------------------------------------------------------------- Loading... FEATURED FLORIDA PINS! * KLO NEALY This is an iconic scene of the beach located directly on A1A and Las Olas Blvd. in Fort Lauderdale Florida. 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