Angola, Ethiopia, and Kenya’s debts represent 47% of African debts owed to China, a new report by rating agency, Moody’s, has said.
The report, titled “Sovereigns – Africa, China’s lending supports growth, exacerbates fiscal and external pressures in Sub-Saharan Africa”, lamented that Angola owes 30% of the continent’s debt stock towards China.
This translates into each of the country 28 million citizens owing China $745, while it said Ethiopian’s 10%, was the second in the ranking of countries with the most important volume of debt towards China, ahead of Kenya’s 7%.
Others with considerable Chinese debt main are Congo republic (5%), Sudan (5%), Cameroon (4%) and Zambia (4%).
According to the China Africa Research Initiative (CARI), a research centre that depends on the American University Johns-Hopkins, China provided $94.4 billion in loans in Africa between 2000 and 2015.
The Asian giant promised $60 billion funding to Africa within three years during the sixth edition of the Forum on China-Africa Cooperation (FOCAC) held in December 2015 in Johannesburg. These funds have almost been totally provided.
Similarly, in September 2018, during the FOCAC in Pekin, China announced $60 billion of additional funds to Africa. This fund includes $20 billion in credit lines, $15 billion as grants, interest-free and non-concessional loans, $10 billion for a special fund and $5 billion to support African imports.