China Lends to Africa Amid Debt Concerns
(MENAFN) Nearly half of the top 20 nations with the greatest financial obligations to China are located in Africa—11 in total.
This reflects China’s active involvement in addressing the continent’s developmental challenges, especially in the area of large-scale infrastructure, as part of its “Belt and Road Initiative.”
Launched in 2013, this initiative seeks to establish a broad and interconnected infrastructure network, linking China with other regions in Asia, as well as with Europe and Africa.
It encompasses the construction of key developments such as rail systems, major roads, and energy facilities.
Africa has emerged as a central participant in this plan, receiving substantial funding from Chinese institutions like the Export-Import Bank of China and the China Development Bank.
However, this influx of capital has triggered ongoing discussions, with analysts raising the possibility that these African nations might fall into a “debt trap.”
Key concerns include a perceived “lack of transparency” surrounding the financial agreements and whether the projects are economically viable in the long term.
Specialists also fear that some nations might be compelled to surrender vital infrastructure to China as the weight of their debts grows.
According to 2023 statistics from the World Bank, Angola holds the highest debt to China among the African countries, with a financial obligation of USD17.8 billion.
Ethiopia follows with USD6.5 billion, then Egypt at USD6.3 billion.
Both Zambia and Kenya owe USD6 billion, while South Africa and Cameroon each owe USD3.5 billion. The Republic of Congo is listed with USD3.2 billion, and the Democratic Republic of Congo owes USD2.9 billion.
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