Browsing: Chinese loans

• Leaders of Africa’s big economies such as South Africa and Kenya are in Beijing seeking loans for big infrastructure projects.
• Kenya, for instance, is eager to secure additional financing to complete stalled BRI projects.
• In return, analysts say China is keen on creating avenues for accessing minerals and market opportunities for their finished products.

This week, the city of Beijing will be hosting a gathering that could shape the future of Africa’s economic landscape for years to come. The Forum on China-Africa Cooperation (FOCAC) is set to welcome a delegation of African leaders eager to secure substantial financing for key infrastructure projects back home.

Amidst intensifying global competition and shifting economic dynamics, this year’s China-Africa summit promises high-stakes discussions.

The Beijing Summit comes at a critical moment not only for Africa but also for China and the broader international community. Over the past decade, China has solidified its position as …

China’s reduced lending to Africa has raised concerns about the future of Africa’s economic development and its relationship with China. The reduction in lending is due to a combination of factors, including the slowdown in the Chinese economy, the growing debt burden of African countries, and China’s increased selectivity in its lending.

The reduced lending has several implications for Africa’s economic future. African countries must find alternative sources of financing, a shift towards domestic resource mobilization, a change in the balance of power between China-African relations, and a potential slowdown in infrastructure development. African countries must navigate these changes carefully to ensure sustainable economic growth in the coming years.…

In the last 20 years, Africa’s external debt has grown fivefold to about $700 billion. According to Chatham House, a policy centre in London, Chinese lenders account for about 12 per cent of that amount. As of November 2022, the International Monetary Fund (IMF) and the World Bank considered 22 low-income African countries to either be in debt distress or facing potential external debt distress.…