Follow CAP on Social Media

Listen to the CAP Podcast

Africa’s Cost of Borrowing is Orders of Magnitude Higher Than the Rest of the World

To understand why African finance leaders are so determined to avoid a default on their Eurobond debt all you have to do is look at the current interest rates that many of the continent's largest economies are paying for their government bonds.

Brookings Scholar Yun Sun Provides a Road Map For Chinese Debt Relief in Africa

There's growing anticipation over how China will respond to Africa's calls for debt relief amid the worsening COVID-19 crisis that is ravaging economies across the continent. So far, there have only been a few hints as to how China will proceed, ...

Black Monday in Johannesburg: The JSE Had One of Its Worst Trading Days in 20 Years Over Mounting COVID-19 Concerns

Share prices on Africa's leading index, the Johannesburg Stock Exchange, plummeted on Monday amid surging investor fear over the economic damage caused by the escalating COVID-19 crisis.  The JSE shed 4.5% in trading yesterday, making it one ...

World Bank Chief’s Criticism of AfDB Lending Practices Also Reflects Broader U.S. Anxiety About Chinese Debt in Africa

Officials at the African Development Bank (AfDB) are still smarting over last week's comments by World Bank president David Malpass who accused the AfDB of having “a tendency to lend too quickly and add to the debt problem of the countries" on the ...

China: Between Opening up Its Financial Sector and Holding on to Its Key Economic Sectors

Until recently, foreign companies had been restricted from autonomously and freely operating in the Chinese market due to the strict requirement by China’s government for full Chinese ownership and leadership in the country’s key economic sectors: telecommunications, railways, finance, aerospace among others. For foreign companies that operate ...

Kenya Looks Beyond China for New Sources of Development Finance

Since the new year, Kenya has taken some rather bold steps to reduce its borrowing costs and ensure that new loans are "fairly priced." The Treasury is seeking to refinance large portions of its current debt that's priced at commercial rates into more affordable concessionary loans. Separately, ...

Debunking the China-Africa “Debt Trap” Meme

Swedish scholar Johanna Malm is one of the world's leading researchers on China-DR  Congo relations and now joins the growing number of experts who refute the still widely-held China "debt trap" narrative. In a recent interview published by the government-run Swedish Institute, Dr. Malm explained that there's ...

Are IMF Loans Being Used to Counter China in Africa?

The growing influence of China in world politics has not gone unnoticed in Washington. In 2018, while presenting the U.S. national defense strategy, which set priorities for the Pentagon, then U.S. Defence Secretary Jim Mattis declared in very clear terms that the United States was entering ...

The “Good vs. Bad” Framing of Chinese Development Finance

Friday's FT article by correspondent Steve Johnson on the merits of Chinese development financing provoked considerable discussion online this weekend about the key issues raised in the story and how the topic is framed in simple "good vs. bad" terms. ...

As African Leaders Say Don’t Worry, IMF Issues New Warning on Rising Debt Levels Across the Continent

There are conflicting messages emerging about the potential risks associated with Africa's steadily rising debt levels. Yesterday, the IMF issued a new warning that the amount of debt that African governments now owe has doubled over the past years as borrowing from capital markets and bilateral lenders, ...
Page 24 of 26123242526