Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts

Tuesday, August 25, 2026

Nigeria Turns to French and Israeli Satellite Companies to Replace Chinese Company

 Business Insider Africa published on 24 August 2026 an article titled "After $11.4 Million China Satellite Debt Dispute, Nigeria Turns to Israeli, French Firms for Next-generation Satellites" by Solomon Ekanem.

Nigeria is turning to Israeli and French satellite manufacturers for its next-generation communications infrastructure, months after a dispute with China Great Wall Industry Corporation (CGWIC) exposed the country's dependence on China for critical satellite operations.  The decision follows a dispute with CGWIC, which threatened to suspend services over an $11.44 million debt.  

Sunday, August 23, 2026

China-Africa Ties and US Policy

 The Congressional Research Service published on 6 August 2026 a paper titled "China-Sub-Saharan Africa Ties and U.S. Policy" by Nicolas Cook, Lauren Ploch Blanchard, and Michael D. Sutherland.

China presents its engagement in Africa as promoting mutually beneficial economic development without imposing political conditions.  In practice, China seeks to use integrated multidimensional engagement to advance its broader global strategic goals of expanding its international influence, strengthening its access to natural resources, and challenging US global leadership.

Economic activity is a central pillar of China's activity in Africa.  Beijing's policy banks and state-backed lenders have extended numerous loans to African governments and other actors, making China a key bilateral creditor on the continent.  China engages in education and media cooperation, and provides development aid via grants and concessional loans, technical assistance, and humanitarian programs. Security cooperation between China and African countries has grown, especially over the last decade. 

Monday, August 17, 2026

Kenya Considers Chinese Bond Market

 Reuters published on 14 August 2026 an article titled "Kenya Eyes Debut Chinese Bond Market Issuance This Fiscal Year."

Kenya is considering issuing its first ever bond on the Chinese domestic debt market known as panda bonds, as it seeks to raise $300 million to plug a gaping hole in its budget for this fiscal year.  

Kenya has a budget deficit of 5.5 percent of gross domestic product for this fiscal year.  It is seeking financing from a variety of other sources.  

Friday, August 14, 2026

China and US Following Zambian Election: Critical Minerals Are the Prize

 The Associated Press published on 14 August 2026 an article titled "Zambia Awaits Presidential Election Results. Here's Why China and the US May Be Interested" by Jacob Zimba.

Zambia awaits the results of an election that will decide whether President Hakainde Hichilema wins a second five-year term.  Both China and the US are interested in Zambian copper and cobalt and hence the outcome of the election and its impact on each country.

Friday, July 31, 2026

Ethiopia's Economic Outlook

 Nanyang Technological University published on 6 July 2026 an article titled "Assessing Ethiopia's Economic Reform and Outlook" by Rafiq Raji.  

Ethiopia's economic growth since 2022 has averaged about 8.5 percent and is projected to maintain that rate at least until 2030, assuming there are no catastrophic events such as a war in Tigray region or with Eritrea.  Inflation is trending down and Ethiopia has restructured its significant level of debt.  The country's exports are doing well.  

Friday, July 17, 2026

China-South Africa Supply Chain Issues

 The Foreign Policy Research Institute published on 16 July 2026 an article titled "Beyond the Supply Chain: South Africa's China Dilemma" by Raghvendra Kumar.

The question facing South Africa is whether China's evolving supply chain diplomacy is designed to support Pretoria's fair and equitable participation or to reinforce Beijing's own geoeconomic priorities.  South Africa is China's largest trading partner in Africa, but it runs a large trade deficit with Beijing.  

The author concludes that South Africa's relationship with China will be successful only if Pretoria retains control over its critical infrastructure, strategic industries, and foreign policy choices.  

Friday, July 10, 2026

As the West Pulls Out of War-torn Sudan, China Steps In

 The Diplomat published on 8 July 2026 an article titled "Three Decades in, China Is Cashing in on Sudan's Collapse" by Paul Mwirigi.

In the midst of a three-year-long civil war, most Western countries have abandoned Sudan.  China, on the other hand, is investing in projects such as copper mining.  

Thursday, July 2, 2026

Ethiopia Signs Debt Deal with Private Lenders

 Foreign Policy published on 1 July 2026 an article titled "What to Know About Ethiopia's Debt Breakthrough" by Nosmot Gbadamosi.

A year ago, Ethiopia reached a final agreement on restructuring $8.4 billion of bilateral loans, with $3.5 billion in debt relief.  But a deal on the $1 billion bond held by private lenders proved to be more elusive.  Under a recent deal, the bondholders have agreed to reduce the $1 billion debt to $880 million, repaid in installments by 2029.

Tuesday, June 30, 2026

China Cancels Tiny Portion of Sudan's Debt

 The Sudan Tribune published a report dated 29 June 2026 titled "China Forgives $50 Million of Sudan's Debt to Ease Economic Strain."

Sudan and China signed on 28 June an agreement to cancel about $50 million in four interest-free loans that China had provided to Sudan.

Comment:  China and Sudan have made much of this debt cancellation.  It is important to put it in perspective.  At the end of 2023, Sudan's total external debt stood at $66.8 billion. According to AIDDATA, a research lab at William & Mary, Sudan's debt to China at the end of 2021 totaled $18 billion. (See page 392 of the AIDDATA report here.)  

While any debt cancellation for Sudan is a welcome development, this particular decision does not even scratch the surface of Sudan's debt problem.  

Friday, June 12, 2026

China Expands Influence in Africa's Maritime Networks

The Africa Center for Strategic Studies published on 10 June 2026 a study titled "Beyond Ports: China Embeds Itself in Africa's Maritime Networks" by Paul Nantulya.   

China has established new shipping corridors that connect African port clusters in West, North, and Southern Africa to Chinese port hubs in Qingdao, Tianjin, and Yantai.  These routes add to the dozens of direct lines between African and Chinese ports, reflecting growing integration into China-centered maritime networks.  

Tuesday, June 9, 2026

Why China Needs Africa

 Semafor published on 3 June 2026 an article titled "Africa's Leverage with China Is Growing" by Yinka Adegoke.

It's simple; China needs Africa's raw materials, especially critical minerals, to maintain its industrial output and export program.  

Sunday, April 12, 2026

China, Ethiopia, and Eritrea

 Borkena published on 11 April 2026 an article titled "Chinese Special Envoy to Horn of Africa Meets Eritrean President."

Ambassador Hu Changchun, China's Special Envoy to the Horn of Africa, met this week in Asmara with Eritrean President Isaias Afeworki.  While this appears to be a routine meeting, it follows a high-level Ethiopian visit to China to restructure its large debt.  Landlocked Ethiopia has also approached China concerning mediation with Eritrea on access to the Red Sea.

Monday, April 6, 2026

Ethiopia-China Debt Talks

 The Ethiopian News Agency posted on 3 April 2026 an article titled "Landmark Ethiopia-China Talks Unlock Debt Deal, New Airport Financing."

Discussions between the Ethiopian and Chinese ministers of finance "marked a meaningful step" in restructuring Ethiopia's existing debt stock.  They reportedly reached agreement on debt treatment but did not sign a final agreement.

Ethiopia Today published on 3 April 2026 an article titled "From Dollars to Yuan: Ethiopia and China Move Toward a New Era of Financial Cooperation."

Reporting on a meeting between the governors of the National Bank of Ethiopia and the People's Bank of China, this account said the two countries are exploring an aggressive shift toward the Chinese Renminbi (RMB) to bypass the U.S. dollar in bilateral trade.

Thursday, April 2, 2026

Beijing Shows Different Look in Africa Compared to US

 China-Africa Security Radar posted on 2 April 2026 a commentary titled "Beijing Capitalizes on Washington's Aggression" by Paa Kwesi Wolseley Prah.  

China's Vice President Han Zheng visited Kenya, South Africa, and Seychelles in March.  The author argues the visit was timed in the context of Washington's capture of the Venezuelan president and the US/Israeli war against Iran.  

Both developments demonstrated US willingness to deploy military power unilaterally and with little deference to international law.  This juxtaposition of events permitted Han Zheng to underscore to an African audience China's message of South-South solidarity, sovereign equality, and development partnership.   

Sunday, March 29, 2026

Kenya and China Advance Trade and Railway Cooperation

 The South China Morning Post published on 27 March 2026 an article titled "Kenya Secures Trade Deal with China but Rising Debt, US Competition Complicates Deeper Ties" by Jevans Nyabiage.

Kenya secured trade and infrastructure deals during a visit by China's Vice President Han Zheng but Nairobi's rising debt and balancing ties with the West complicates its relationship with Beijing.  

Sunday, March 22, 2026

Kenya and Uganda Press Ahead with Chinese-built Railway Extension

 Agence France Presse published on 21 March 2026 an article titled "Kenya, Uganda Open Rail Extension Burdened by Chinese Debt."

The completion of the Chinese-built and financed standard-gauge railway from the port of Mombasa to Naivasha, which was originally intended to reach Kampala, Uganda, has become a major priority for both leaders.  The presidents of Kenya and Uganda recently met to discuss the railway extension.

Chinese companies will build the extension, which Kenya will finance by borrowing against future cargo taxes.  

Saturday, March 21, 2026

Ethiopia Moves Away from Marxist Economics

 The Washington Post published on 18 March 2026 an editorial titled "Ethiopia Starts to Bury Its Marxist Past."

The editorial comments favorably on floating Ethiopia's currency in mid-2024, allowing foreign banks to operate in the country for the first time, launching the first stock exchange of the modern era, and, especially, an ambitious privatization effort.  

While it also notes some serious challenges facing Ethiopia, it concludes that opening the economy can help make everything else easier for a country that has failed to live up to its potential for too long.  

Friday, March 20, 2026

Impact of Chinese State-Owned Enterprises in Africa

 The Africa Center for Strategic Studies published on 17 March 2026 an analysis titled "Chinese State-Owned Enterprises and Market Capture in Africa" by Paul Nantulya.

China has the largest state-owned enterprise (SOE) sector in the world, accounting for about 20 percent of China's GDP.  African economic sectors such as mining, railways, and power generation can become dominated by large Chinese SOEs.  They can then out compete African companies and other investors, create supply chain dependence on Chinese firms, and reduce the bargaining power of African governments.  

Wednesday, February 25, 2026

Chinese Oil Companies in Niger in Line of Fire

 US Africa Command's Africa Defense Forum magazine published on 10 February 2026 an article titled "Rebels Target Niger Junta's Oil Revenue."

The Patriotic Movement for Freedom and Justice is engaged in a campaign to topple the military junta in Niger and restore elected President Mohamed Bazoum.  A significant part of the junta's revenue is generated by the oil pipeline from Niger to Benin.  The China National Petroleum Corporation and its subsidiary West African Oil Pipeline Company constructed the pipeline and continue to be engaged in its operations.  Most of the exported crude goes to China.  

China's involvement in the project has put Chinese oil companies in harm's way.  Beijing now seeks to find a way to protect both its investment and personnel still involved in the project from attacks by the Patriotic Movement for Freedom and Justice.    

Thursday, February 19, 2026

Can Ethiopia's Strong Growth Rate Continue?

 Foreign Policy published on 18 February 2026 an article titled "What's Behind Ethiopia's Double Digit Growth: And Can Addis Ababa's Boon Last?" by Nosmot Gdabamosi. 

Ethiopia's impressive growth rate is being driven by floating the exchange rate for its currency, the birr, and strong exports of coffee and gold.  But high debt and involvement in Sudan's civil war could reverse the current positive numbers.