CHINA IN AFRICA

  • 2009 – eclipsed the US
  • Became, on a cumulative, scale, biggest trade partner for the countries on the continent.
  • Bilateral lender loans – China ranks first for Africa
  • Half of the loans – by private lenders

$696 Billion

  • Africa’s external debt – private + public (2000 to 2020)
  • 12% accounted by Chinese creditors
  • Lending fallen in recent years
  • May get worsen in 2023

(Chatham House)

Chinese Loans to Africa Database

  • 2000 to 2020
  • Amount: $159.9B
  • No. of Loans: 1,188
  • BRI in focus
  • Largely infrastructure loans
  • Transport – $46.8B
  • Power – $40.5B
  • Mining – $18.0B
  • ICT – $13.5B

(SAIS-CARI)

Changing lending pattern

  • 2000 – 3 Chinese creditors / 2019 – 30+ Chinese creditors
  • Chinese creditors – mostly Chinese state owned companies
  • 2000 – Govt loans – at subsidized rates
  • 2019 – loans at commercial rates
  • Focus – resource-backed loans
  • Loans on oil/minerals exports
  • Critics allege it of debt-trap diplomacy
  • Long-term aim – naval bases critics allege

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