China’s financial influence in Africa has come under scrutiny as several nations find themselves entangled in significant debt, sparking concerns about the broader economic implications. Business Insider Africa sheds light on the top 10 African countries facing the highest debt to China, shedding light on a contentious issue that has drawn attention from global leaders.
In the wake of economic uncertainties exacerbated by the COVID-19 pandemic and the geopolitical tensions stemming from Russia’s invasion of Ukraine, numerous African countries are wrestling with a debt crisis. The contentious issue of African debts to China has become a focal point in global economic discussions, with some alleging that China is setting a debt trap for impoverished nations on the continent.
The matter gained further prominence when U.S. Treasury Secretary Janet Yellen, during her visit to Africa in January 2023, openly accused China of establishing debt traps for economically vulnerable African countries. China, in response to mounting concerns, clarified that their intentions were not malicious and, as a gesture, canceled certain debts while extending payment terms for others.
A staggering 22 low-income African nations now face or are at significant risk of experiencing a debt crisis, with the economic repercussions of the COVID-19 pandemic and geopolitical events compounding their difficulties in meeting financial obligations. Chinese lenders, responsible for 12% of Africa’s private and public external debt, have seen their influence rise substantially, reaching $696 billion from 2000 to 2020.
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A recent report by Chatham House sheds light on the top 20 recipients of Chinese loans in Africa from 2000 to 2020, revealing a shift from resource-based excess to more strategic lending. Notably, the figures presented in the report are based on loan commitments and should not be equated to official African government debt.
The World Bank identified seven African nations in financial trouble or at risk of debt distress in 2020 due to the volume of Chinese financing. Among them, five nations feature prominently in the list of the top 10 African countries with the highest debt to China.
Top 10 African Countries with the Highest Debt to China:
| Rank | Country | Debt Owed (in $ millions) |
|---|---|---|
| 1 | Angola | 42,619 |
| 2 | Ethiopia | 13,728 |
| 3 | Zambia | 9,848 |
| 4 | Kenya | 9,175 |
| 5 | Nigeria | 6,732 |
| 6 | Cameroon | 6,202 |
| 7 | Sudan | 6,169 |
| 8 | Democratic Republic of Congo | 5,390 |
| 9 | Ghana | 5,308 |
| 10 | Côte d’Ivoire | 3,722 |
As African nations navigate these challenging financial circumstances, concerns persist over their ability to finance social improvements and respond to climate change. The ongoing economic landscape suggests that the issue of African countries’ debt to China will likely remain a critical aspect of global economic discussions throughout 2024.
