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

The leader of the African Development Bank is calling for a termination to loans given in exchange for oil or essential minerals used in smartphones and electric car batteries. Such exchanges have left some African countries in financial disaster and have assisted China control the extraction of important minerals, such as cobalt, in Congo.

Akinwumi Adesina spoke in an interview with The Associated Press that these agreements come with a series of problems, directing to unfair negotiations where investors typically dictate terms to cash-strapped African nations. He displays a lack of transparency and possibility for fraud also help establish fertile ground for corruption. At least 11 African countries have taken loans guaranteed with their natural resources since the 2000s.