Home›Global Markets›Emerging Markets›China collects more African loan repayments as new fun…

China collects more African loan repayments as new funding slows

After advancing US$30.4 billion to African governments from 2010 to 2014, China collected US$22.1 billion in net repayments over the past five years, signaling a shift from lending to repayment.

Reported · Written up by our desk · Emerging Markets

China has shifted its role in Africa from a major bilateral financier of large infrastructure projects to a net collector of repayments as earlier loans reach maturity, according to analysis cited by the SCMP Economy.

The report says Beijing built a position as Africa’s principal bilateral lender for big-ticket railways, bridges, dams, and ports since the mid-2000s, but that the pace of new disbursements has tightened as those debts move into repayment.

Referencing data compiled by Boston University’s Global Development Policy Centre and calculations by the outlet, the analysis also notes a repayment swing: after advancing US$30.4 billion to African governments between 2010 and 2014, China collected US$22.1 billion in net repayments over the past five years.

More like this

Sources