Why Is the Asian Infrastructure Investment Bank Lending Money to Rwanda?

Exterior of the Asian Infrastructure Investment bank headquarters in Beijing. Image CC BY-SA 4.0

It came as a bit of a surprise to some that the Beijing-based Asian Infrastructure Investment Bank (AIIB) approved its first project in sub-Saharan African country a few weeks ago with a $100 million loan to Rwanda as part of the bank’s COVID-19 Crisis Recovery Facility that it set up last year.

Why is an Asian-focused infrastructure bank lending money to African borrowers? And why Rwanda?

  • Get a daily email packed with the latest news and analysis from Africa, Asia, and across the Global South.
  • Read exclusive insights on the key trends shaping China’s relations across the Global South.
  • Full access to the News Feed that provides daily updates on Chinese engagement in the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2
Uncertainty Roils Minerals Markets
3 Chinese Scholars See Russia’s Venezuela Strategy as a Model of Hybrid Power Projection in the U.S.’ Backyard
4 India Forced to Pay Russia in Yuan, Handing China an Unexpected Win
5 From J-10C to Kaan? Indonesia’s Fighter Jet Deal With Turkey Shocks Chinese Military Fans
6 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C

You Might Like

Amid a Worsening Debt Crisis, Kenya Struggles to Finance New Infrastructure and All Those Useless “White Elephants”

The Kenyan government, like a lot of African governments, is struggling to find the right balance between continuing to pay for badly-needed new infrastructure while at the same time servicing its enormous debts ...

African Governments Need to Prepare For a New Era of Chinese Lending That Will be Smaller and More Targeted, Says Analyst

The recent pullback in Chinese lending for African infrastructure development makes sense, given debt sustainability problems in more than a third of the countries across the continent, explained Damilola Akinbami, the Lagos-based head ...

“The Idea That Africa is Drowning in Debt is Nonsensical”

The former president of the African Development Bank, Dr. Donald Kaberuka, joined a chorus of African leaders this week to reject accusations that African governments have taken on too much debt and have ...

China and Rwanda Sign Loan Deal for New Hydroelectric Power Plant

The China Exim Bank will provide a $214 million concessional loan to Rwanda to build the 43.5mw Nyabarongo II  power plant in the southern Muhanga District, according to a report in ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP
Detected IP: ...

Create a free account, or log in.

Gain access to limited free articles, exclusive research & analysis, news updates, and podcasts.

Yes! I would like to receive new content and updates.