African countries have become enmeshed in a web of debt in recent years, with China emerging as a major lender. The consequences of this massive and expanding debt are far-reaching, threatening the economic stability of various governments across the continent.
As the global financial landscape transforms, African governments are left vulnerable, trying to meet rising debts.
With its diverse cultures and riches, the African continent has long been a magnet for international investment. However, the surge of Chinese loans has exacerbated existing economic problems, bringing many countries dangerously near to default. The United Kingdom’s Chatham House has issued an alert, underlining the hazardous position of over 20 low-income African countries on the verge of default. Here are the African countries with the most Chinese debt.
1. Angola
Angola, which had been devastated by civil conflict, began rehabilitation efforts, primarily reliant on Chinese assistance. Today, its debt to China totals $42.6 billion, demonstrating the extent of its reliance on external financing.
2. Ethiopia
Ethiopia has looked to China for assistance in achieving economic growth and development goals. However, its debt burden of $28.2 billion highlights the difficulties of handling external obligations.
3. Zambia
Despite its vast natural resources, Zambia is heavily in debt, with roughly one-third due to China. The country’s debt is a staggering $1.33 trillion, posing a serious threat to its financial viability.
4. Kenya
Kenya, known for its infrastructure initiatives, has incurred significant debt from Chinese loans. With debt liabilities over $1.2 trillion, the country is dealing with the consequences of its borrowing spree.
5. Cameroon
Cameroon, another beneficiary of Chinese investment, is facing rising debt strain, with debts totaling KSh 837 billion. The country’s future is at stake as it navigates its financial obligations.
6. Sudan
Sudan, which has faced economic troubles in the past, found refuge in Chinese loans to help it prosper. However, its $5.12 billion debt demonstrates the difficulty of handling external funding.
7. DR Congo
Endowed with enormous natural resources, the Democratic Republic of the Congo wanted Chinese assistance to drive its economic growth. However, its debt exceeds KSh 727.7 billion, highlighting the difficulties of servicing foreign obligations.
8. Nigeria
Nigeria, Africa’s largest economy, confronts increasing debt commitments to China totaling $5.16 billion. While its debt-to-GDP ratio remains relatively low, the government is dealing with the consequences of its borrowing spree.