Monday, October 1, 2018

African Debt, Agency, and Chinese Loans

The South African Institute of International Affairs published in August 2018 a paper titled "Debt Trap? Chinese Loans and Africa's Development Options" by Anzetse Were, weekly columnist for Business Daily Africa.

The paper explains why African debt is rising and why Chinese loans are particularly attractive from the viewpoint of African governments. It concludes that the debt trap narrative underestimates the decision-making power of African governments. However, there are important caveats for African governments. These include the impact of China's Belt and Road Initiative on African development agendas, the possible impact of spiralling debt on African sovereignty, and the complex impact of corruption.