Wednesday, July 29, 2020

Africa's Debt with China

Geopolitical Monitor published on 24 July 2020 a commentary titled "New 'Debt Trap' Concerns over China Lending to Africa" by Adrian Stones and Yigal Chazan, both with the London-based business intelligence consultancy Alaco.

Chinese financing is helping to build vital infrastructure in Africa but the debt it is incurring is looking increasingly unsustainable.  China is Africa's single largest creditor.  China's state-owned Global Times recently suggested one possible solution is the use of debt-for-equity swaps, an especially controversial tactic.

The 16 April 2020 Global Times article, which was written by the deputy director at the Ministry of Commerce's Chinese Academy of International Trade and Economic Cooperation, contains important insights on China's approach to the African debt dilemma. 

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