Angola, Ethiopia huge debtors to China

The total debts of three African countries – Angola, Ethiopia, and Kenya – represent 47 per cent which the continent owed to China.

A rating agency, Moody, said in its report, “Sovereigns – Africa, China’s lending supports growth, exacerbates fiscal and external pressures in Sub-Saharan Africa”.

The report lamented that Angola owes 30 per cent 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%).

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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.

At the Forum of China-Africa Cooperation in September 2018, 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. (NAN)

 

AngolaChina Africa Research InitiativeEthiopiaKenyaSub-Saharan Africa
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