China-Africa 101: China’s Role in Africa’s Debt

One of the most talked-about issues in Africa-China relations today is debt. Africa is borrowing heavily from China and many observers worry that African governments do not have the capability to pay it back. The Belt and Road Initiative (BRI), China’s trillion-dollar effort to connect Asia, Europe, and Africa through a network of infrastructure, is also frowned upon for the debt that it could saddle nations with.

The Center for Global Development recently analyzed the debt problems of 68 countries identified as BRI borrowers and found that eight countries are at particular risk of distress. Djibouti, the site of China’s first and only military base, is one of these countries. The Center notes that according to the IMF, Djibouti’s public external debt leaped from 50 percent to 85 percent of its GDP in just a couple of years. Much of the debt is apparently owed to the China Exim Bank.

  • 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.