See the top 10 African countries with the highest overall Chinese loans

• About 10 African countries, including Nigeria, person emerged arsenic the largest borrowers of Chinese loans successful 10 years
• A caller database obtained from Boston University shows however overmuch each African state owes and the fig of borrowings
• The loans were reportedly utilized to concern captious infrastructure specified arsenic roads, railways, and powerfulness projects

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

In the past 20 years, China’s fiscal engagement with Africa has grown immensely, particularly successful the areas of infrastructure funding.

The loans person helped to physique captious infrastructure specified arsenic roads, railways, and powerfulness plants successful respective African countries.

President Bola Tinubu engages Chinese President, Xi Jinping, connected the bilateral relationship. Credit: Bloomberg/Contributor
Source: Getty Images

New information shows apical borrowers from Africa

However, they person besides raised captious questions astir indebtedness sustainability, repayment risks and the semipermanent autonomy of these economies.

According to a database compiled by Boston University’s Global Development Policy Centre, these Chinese loans supply a broad indebtedness statement betwixt China and African countries implicit 13 years, from 2000 to 2023.

The data revealed the full indebtedness sum and besides the fig of idiosyncratic indebtedness agreements betwixt Beijing and the African countries.

Chinese lending picked up successful 2023, aft respective years of decline, reaching the highest level since 2016.

Angola: $46 billion

The information shows that Angola tops the database with $6 cardinal successful loans from China via 270 borrowings.

The country’s repayment exemplary is via crude oil, which became the earliest illustration of resource-backed borrowing successful Africa.

Ethiopia: $14.5 billion

The East African state has borrowed a cumulative $14.5  cardinal from the Asian country, showing its dependence connected Chinese loans, and has utilized it mostly for railways, powerfulness projects, and telecom infrastructure funding.

Part of the loans was utilized to money the Addis Ababa-Djibouti Railway, financed wholly retired of Chinese loans.

Nigeria, Kenya, and Egypt: $9.5 billion

Reports accidental Egypt, Kenya, and Nigeria came close, with each borrowing betwixt $9.5 cardinal and $9.7 billion.

Egypt’s loans person helped to make transportation, electricity, and existent property projects, portion Kenya’s financing was captious successful constructing the Standard Gauge Railway.

Similarly, Nigeria has utilized its Chinese loans for rail, road, and powerfulness infrastructure.

Zambia: $9.5 billion

Zambia’s indebtedness to China comes from 82 borrowings, the largest fig successful the apical 10, suggesting predominant borrowing for smaller-scale oregon diversified infrastructure efforts.

Others see South Africa, South Sudan, Sudan, Ghana, and Cameroon, each owing implicit $5.9 billion, showing years of engagement crossed transport, energy, and nationalist work sectors.

Concerns implicit outer debts

Growing Chinese obligations among African countries amusement the continent’s dependence connected outer backing for development.

Egypt's Abdel Fatah Al-Sisi, William Ruto of Kenya, and John Mahama of Ghana each beryllium connected Chinese funding. Credit: Bloomberg/Contributor
Source: Getty Images

However, Chinese loans person allowed tangible infrastructure improvement that different Western concern corporations often hesitate to give.

However, Africa’s dependence connected outer borrowings, particularly from Beijing, raises concerns astir indebtedness distress, constricted fiscal space, and vulnerability to outer factors.

Nigeria's indebtedness servicing surges amid N144trn loans

Legit.ng earlier reported that according to reports, domestic indebtedness service outgo for the twelvemonth nether reappraisal stood astatine N5.97 trillion, representing a 14.15% summation from N5.23 trillion successful 2023.

The summation is owed to higher involvement rates and rising home borrowing.

Nigeria spent astir $4.66 cardinal connected outer indebtedness servicing, an summation of 167% from N2.57 trillion recorded successful the erstwhile year.

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Source: Legit.ng