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African Borrowers Need to Wake Up to the Reality of Chinese Loans

Chinese lending to developing countries has come under sharp focus since the release of several reports that have reshaped the debate. Unsurprisingly, many news reports, like the BBC’s “China: Big spender or loan shark” are ringing the alarm bells. However, I’d argue that the reports should rather prompt new thinking on how to establish a more efficient and sustainable lending regime.

Questions have been raised over the public policy choices made by the African leaders signing these deals. It’s important to acknowledge that they’re operating in a space defined by limited financing options and an overload of short-term political goals at home.

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