Did China’s FOCAC Financial Package Go Down? Stay the Same? Or Go Up? It’s Too Early to Tell

The main story from this year’s FOCAC, at least according to Bloomberg and the Financial Times, is that “debt traps” and “debt concerns” prompted China to scale back the size of its financial assistance package.

The narrative that’s emerging in these two publications is that the $40 billion package announced this week is a third less than the $60 billion commitment made at the previous two FOCACs in Beijing and Johannesburg, and debt sustainability is the main reason for the curtailment.

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout 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 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3
Indonesia Begins $5.9 Billion Chinese EV Battery Project Despite Environment Fears
4
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths
5
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
6
China, U.S. Ink Rare Earth Deal; More Trade Pacts Coming

You Might Like

Financial Times Explores the Current State of Chinese Lending in Africa

Last year’s controversy surrounding the fate of the Entebbe International Airport in Uganda and the (incorrect) allegation that it risks being seized by Chinese creditors is the subject of a 

FT Editorial: Transparency Is the Key to Solving the Zambian Debt Crisis

The Financial Times newspaper published a sharply worded editorial this weekend that called on Chinese creditors and Zambian borrowers to be more transparent in their dealings with one another in order to avoid ...

It’s Eerily Quiet 24 Hours Before Zambia’s Bondholders Reveal Their Decision on Whether to Restructure the Country’s Debt

The Zambia External Bondholder Committee, a coalition of private creditors that own around 40% of Zambia’s Eurobond debt, is expected to announce tomorrow whether they will approve the government’s request for a six-month ...

World Bank Chief’s Criticism of AfDB Lending Practices Also Reflects Broader U.S. Anxiety About Chinese Debt in Africa

Officials at the African Development Bank (AfDB) are still smarting over last week’s comments by World Bank president David Malpass who accused the AfDB of having “a tendency to ...

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