Friday, August 5, 2022

Another View on China and African Debt

 Chatham House published on 3 August 2022 a commentary titled "Climbing Out of the Chinese Debt Trap" by Alex Vines.  

China's involvement in African debt has varied considerably and over time.  Having engaged in lending for poorer quality projects in earlier years, China is now imposing stronger sustainability requirements.  It is also paying a price for its lack of transparency.  This situation seems to have resulted in a decision to move away from loans and towards foreign direct investment.