China has lent over $143 billion to African governments and state owned companies.
Photo credit: Dauntless Jaunter
Due to the COVID-19 pandemic, there has been a drag in economic growth and the flow of funds for current infrastructure development projects in Africa. As a result, some African countries find it strenuous to repay their loans to the Chinese government, thus renegotiating debt.
According to research conducted by Aid Data at the College of William & Mary, African borrowers account for 47% of the one hundred loan agreements between Chinese government organisations and twenty-four other low- and middle-income nations in the sample. This indicates how African countries are heavily yoked with Chinese debt.
Here is the list of the top 7 African countries with the most Chinese debt.
Angola
Angola is the African country with the highest debt to China. It owes over $25 billion, and as a result, the majority of its oil is used to repay Chinese loans.
Ethiopia
With an estimated $13.5 billion debt, the Eastern African country is second on the list. The majority of the debt was utilised to finance infrastructure projects in the country. Due to repayment concerns, debt levels have stalled specific projects in the country. The parties reached a new framework for debt repayments to make it flexible.
Kenya
Republic of Congo
The Republic of Congo has $7.5 billion in debt. Corruption is said to be responsible for the rise in debt of the country to such alarming heights.
Sudan
The war-torn country owes $6.4 billion in debt to China. Even though China has wiped off its debt from 2015, it still has billions to pay.
Zambia
The landlocked country is further entangled in Chinese debt’s tendrils as it owes $6 billion. The Chinese have funded many initiatives in the nation. China is acquiring Zambian companies as part of repayment arrangements. There have been claims that China is receiving ZESCO, the country’s national power provider, and ZNBC, the country’s national broadcaster.
Cameroon
With a bill of $5.5 billion, the West African country is ranked seventh on the list. China is, however, discussing cancelling a portion of this debt.
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