Twenty Years of Data on China’s Africa Lending

Image: Flickr, Hugh Lewellyn
Image: Flickr, Hugh Lewellyn

China's lending to Africa has remained significant in 2019, but its nature is changing.

China’s lending to Africa has remained significant in 2019, but its
nature is changing. Chinese financiers have committed US$ 153 billion to
African public sector borrowers between 2000 and 2019.a At least 80 percent
of these loans financed economic and social infrastructure projects:
mainly transport, power, telecoms, and water. In 2019, Chinese financiers
committed US$ 7 billion to African borrowers, down 30 percent from US$
9.9 billion in 2018. We expect this dip to continue through 2020, reflecting
the impact of the pandemic and associated economic dislocation. Yet we
do not predict a sustained drop in Chinese lending to Africa. Like other
lenders, Chinese banks are interested in the profits available in emerging
and frontier markets.

1 Jan 2021