Top 10 African Countries That Are In Debt To China.
An estimated 20 percent of African governments’ external debt is owed to China, according to the Jubilee Debt Campaign, a charity that wants the debts of developing countries to be written off.
Here are 10 African countries that are in debt to China.
The most recent summary of Nigeria’s external debt stock published by the Debt Management Office shows that at the end of March 2019, Nigeria owed China about $3.2 billion. In fact, of Nigeria’s total debt of $81 billion, Nigeria owes more money to China than any other country it is indebted to, according to Bloomberg.
9. The Democratic Republic of Congo
China’s debts in Africa are mostly located in resource-rich countries, and this is the case with the Democratic Republic of Congo. The country has an estimated debt of $3.4 billion owed to China.
Ghana has an estimated debt of $3.5 billion that it owes to China. The West African country has been one of the fastest-growing economies globally, growing at between 6 and 8 percent in recent years. In November 2019, China announced that it will finance $2 billion worth of rail, road and bridge networks in Ghana, and in exchange, China will be granted access 5 percent of Ghana’s reserves of bauxite.
Cameroon’s total debt owed to China stands at almost $5.7 billion according to figures from the Autonomous Sinking Fund, the public entity that manages Cameroon’s external debt. Around $78 million of that amount was written off in 2019 — money that should have been paid in 2018 but which Cameroon failed to pay.
China has provided billions of dollars of loans for infrastructure projects in African countries as part of its Belt and Road initiative in recent years, with Zambia one of its most prominent debtors. Zambia’s external debt, estimated to be 35 percent of its GDP, reached nearly $10bn in 2018, up from $1.9bn in 2011. Around $6 billion of that is estimated to be Chinese debt.
The Chinese government has financed efforts to extract Sudanese oil and also contributed to major developmental projects in the country. In 2018, Sudan’s total debt to China was estimated at $10 billion.
In May 2019, China agreed to restructure the debt owed by the Republic of Congo as an International Monetary Fund’s precondition to assisting with funding. Congo’s external debt to China is estimated at $2.73 billion, according to a report by the French Embassy in Congo.
Kenya owes China an estimated $7.9 billion in debt — having funded infrastructure projects across the East African country. China is reportedly guilty of aggressive loans with terms that favor the Chinese government unfairly.
Beijing also accounts for nearly half of Ethiopia’s external debt and has lent at least $13.7 billion to Ethiopia between 2000 and 2018, according to data compiled by John Hopkins University School of Advanced International Studies. Chinese funds have contributed to a $3.4 billion railway project connecting Ethiopia to Djibouti, and the construction of Ethiopia’s first six-lane highway, the metro system, and a number of skyscrapers in Addis Ababa, Politico reports.
Angola’s debt owed to China currently stands at $22.8 billion, with recent direct investments including an assembly plant for fishing vessels, an aluminum factory, and a brewery, according to Bloomberg. Despite Angola being the second-largest producer of oil in Africa, most of its precious natural resource is going towards the repayment of Chinese debts.
Angola is so indebted that at the last estimate, every Angolan owes $754 to China.