Right Now, It’s the U.S. Fed, Not China That’s Making African Borrowers Very Nervous

The Federal Reserve building is pictured in Washington, DC, on January 22, 2022. Stefani Reynolds / AFP

While one U.S. foreign policy analyst after another sounds the alarm on the threats posed by Chinese debt in Africa and elsewhere, the reality is that finance policymakers across the continent are currently more anxious about what’s going to happen in Washington, specifically at the Federal Reserve.

The Fed is widely expected to raise interest rates at its next meeting in March in a bid to stem stubbornly high inflation in the U.S. If rates do go up, it could have a potentially severe impact on the continent’s already fragile balance sheets. Many African governments have been struggling to service their burgeoning debts while at the same time spending more on domestic social service programs.

  • 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.

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.