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African Governments Need to Prepare For a New Era of Chinese Lending That Will be Smaller and More Targeted, Says Analyst

The recent pullback in Chinese lending for African infrastructure development makes sense, given debt sustainability problems in more than a third of the countries across the continent, explained Damilola Akinbami, the Lagos-based head of research at Financial Derivatives Company in an interview on the ...

Financial Times Explores the Current State of Chinese Lending in Africa

Last year's controversy surrounding the fate of the Entebbe International Airport in Uganda and the (incorrect) allegation that it risks being seized by Chinese creditors is the subject of a new in-depth report by two prominent Financial Times journalists, Africa Editor David Pilling and ...

China’s Share of Kenya’s Total Debt Shrinks as Borrowing Surges

Kenya's Parliamentary Budget Office (PBO) is forecasting the country's total public debt will reach $78 billion this June and $86 billion by the same time in 2023. Meantime, China's share of the country's debts, estimated at around $6.5 billion, ...

East Africa’s New Year’s Resolution: Borrow More Money

Kenya, Tanzania, and Uganda are starting 2022 with an eye on borrowing hundreds of millions of dollars to fund new infrastructure development and to help close the finance gap created by the ongoing COVID-19 pandemic. The Kenyan ...

Unlike Many Other African Currencies, the Zambian Kwacha Had a Great 2021, Buoyed by Hope for a Debt Deal

While currencies like the Kenyan shilling and the Nigerian naira lost value in 2021, the Zambian kwacha enters the new year with some serious momentum. The kwacha surged 27% last year, mostly on the hope that President Hakainde Hichilema will turn around the economy ...

Analysis from Cobus van Staden

China’s African Debt Experiment

The Financial Times today published a deep dive into the issue of Chinese lending to African countries and what struck me was how it crystallizes some of the underlying issues that aren’t necessarily made clear in the debt debate.

In the first place, it shows that Africa’s need for financing far outstrips both the available financing options and the continent’s current ability to repay them. The Calvinist logic that underlies much of ...

Kenya’s Transport and Infrastructure Minister Explains Why Big Projects All Go to Chinese Contractors

Kenya's straight-talking Transportation and Infrastructure Cabinet Secretary James Macheria (photo) bluntly explained why the government consistently awards major infrastructure projects to Chinese contractors: For any project, we go through a very competitive process. I will give you an ...

Two Leading International Development Finance Heads Single Out China For the Ballooning Debt Crisis in the Global South

Two of the world's most prominent development finance leaders, Emmanuel Moulin (left), chair of the Paris Club, and World Bank President David Malpass (right), separately named China as one of the key factors in the worsening debt crisis among developing countries.

WEEK IN REVIEW: Kenya’s Monetary System Struggling Under the Weight of Chinese Debt Servicing Obligations

The demands of servicing debts, largely to China, are weighing heavily on Kenya's monetary system. The shilling dropped again in Monday trading and the central bank reported that foreign exchange reserves have plunged by $899 million over the last three months. Analysts say beyond the hundreds of millions ...

Nigeria’s Debt Crossed the $90 Billion Threshold… But Not Because of Chinese Loans

Nigeria's total debt, both external and domestic, edged up by 4% to $92.6 billion as of the end of September according to the latest data from the Debt Management Office (DMO).  The DMO said the increase was due largely ...

Zambia’s Bondholders Want More Info on IMF Deal, Renew Calls For All Creditors to be Treated the Same

Some of Zambia's bondholders are once again expressing impatience with the government's handling of its debt relief talks and they've gone public with their longstanding demands for greater transparency in the process and equal treatment for all creditors. "Inter-creditor equity should ...
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