China has solidified its position as the world’s largest public lender, particularly to developing countries, with Africa being its primary trading partner. In 2023, Beijing’s loans to African countries hit a five-year high, with Angola, Ethiopia, Egypt, Nigeria, and Kenya leading the way. Despite the increase, the loans were lower compared to peaks in 2016, as China has become more cautious due to its economic slowdown.
The loan scheme to Africa has also shifted towards more targeted lending and foreign direct investment, focusing on bankable projects. Chinese loans are now smaller and primarily directed towards creditworthy countries like Senegal and Ivory Coast. Nonetheless, China remains a major creditor in Africa, with its investments falling in recent years.
As China hosts the Forum on China-Africa Cooperation, Beijing pledges to enhance its Belt and Road Initiative on a global scale. While the initiative has faced criticism for burdening African nations with debt, countries like Kenya have continued to benefit from Chinese investments for infrastructure projects.
