China is Africa’s biggest lender and given about $140 billion in loans to most African countries as of September 2021.
China has given about $1.5 trillion in loans to over 150 countries around the world which makes it the largest global lender.Macau is the only country in the world that is debt-free, according to the IMF.
The world’s greates economies rank among the 20 countries with the highest external debts. They are the US, Russia, United Kingdom, France, Germany, Japan and China, according to a Daily Trust report.
Africa’s top debtor countries to China
China remains a top global lender
Many African countries take loans from different places as well as from the World Bank, the IMF, China and other countries to finance critical infrastructure and various development projects.
However, IMF says about $285 billion would be required by African countries to finance major infrastructural projects from 2021-2025.
China has risen to become a top global lender with great stakes that exceeds more than five per cent of global GDP.
China has, in total, given about $1.5trn in direct loans and trade credits to about 150 countries around the world, making the country the biggest creditor, surpassing the World Bank and the IMF.
African countries dire need of loans
The IMF says about 20-low income countries in Africa are at risk of debt distress between September and December 2021.
Debts in sub-Saharan Africa stood at about $305 billion.
China leads at the moment in bilateral lending in 32 African countries.
China currently owns about 72 per cent of Kenya’s external debts which is at $50 billion.
Mombasa port could be lost if Kenya defaults on the loan re-payment, according to Kenya’s own auditor general.
In 2020, the African countries with the largest Chinese debt were:
Kenya ($50 billion)
Angola ($25 billion),
Ethiopia ($13.5 billion),
Zambia ($7.4 billion)
The Republic of the Congo ($7.3 billion)
and Sudan ($6.4 billion)
Nigeria ($4.1 billion)
Legit.ng reports that Laos, a South-East Asian country is on the cusp of defaulting on its loans to China after it obtained a loan to build a high-speed train which gave momentum for more debt traps.According to reports, there is no way the country can get a bailout or debt forgiveness as it faces increasing economic and financial crises.
There is a debate as to the exact amount the country is owing China.