- 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