There are growing concerns as the external debts of most African countries continue to rise, outpacing their economic growth. The International Monetary Fund (IMF) projects that by 2024, African economies will grow at 4%, making them the second-fastest-growing economic region in the world after Asia. However, this growth is threatened by the continent’s increasing debt.
Data from the World Bank shows that 12% of Africa’s debt burden is owed to China and Chinese lenders. Here are the top 10 African countries indebted to China:
1. **Angola: $20.98 Billion**
Angola’s debt to China primarily comes from loans for post-civil war infrastructure rebuilding. China’s interest in Angola’s oil sector has led to loans being exchanged for oil shipments.
2. **Ethiopia: $6.82 Billion**
Ethiopia owes China $6.82 billion, with funds invested in projects like the Addis Ababa-Djibouti Railway and various industrial parks to boost economic growth and industrialization.
3. **Kenya: $6.69 Billion**
Kenya’s infrastructure projects, including the Standard Gauge Railway (SGR), have heavily depended on China, leading to a debt of $6.69 billion.
4. **Zambia: $6.08 Billion**
Zambia’s debt to China, amounting to $6.08 billion, is focused on mining and infrastructure projects, given the country’s rich copper resources.
5. **Egypt: $5.21 Billion**
Egypt’s $5.21 billion debt to China has funded infrastructure and energy projects, including the New Administrative Capital.
6. **Nigeria: $4.29 Billion**
Nigeria’s $4.29 billion debt to China is primarily for infrastructure projects like railways, highways, and power plants. As of June 2022, this accounted for 83.57% of Nigeria’s total bilateral debt.
7. **Côte d’Ivoire: $3.9 Billion**
Côte d’Ivoire has benefited from Chinese investment, particularly in rebuilding its economy post-COVID-19.
8. **Cameroon: $3.8 Billion**
Cameroon relies on Chinese loans for infrastructure projects. In 2019, China granted Cameroon debt forgiveness worth about $78 million to alleviate economic hardship.
9. **Republic of Congo: $3.4 Billion**
Congo has partnered with China for industrial development, using loans to finance projects like National Route 1 and National Route 2.
10. **South Africa: $3.4 Billion**
South Africa has depended on Chinese loans for development projects and the operations of its largest power utility, ESKOM.
Chinese lending to Africa has significantly declined since its peak in 2016 at $28.4 billion. By 2022, loans dropped to $995 million, the lowest since 2004, reflecting a shift from China’s previous extensive infrastructure investments amid the current debt crisis plaguing the continent.
