African countries are increasingly sending more money to China in debt repayments than they receive in new loans, signaling a major shift in global development finance. New analysis from ONE Data shows Chinese lending to poorer nations has slowed sharply over the past decade, even as repayments on earlier loans continue to climb. As a result, Africa has swung from a $30 billion net inflow of Chinese financing between 2015 and 2019 to a $22 billion outflow between 2020 and 2024, the largest reversal globally. Stepping into the gap, multilateral lenders such as the World Bank have ramped up support, now accounting for more than half of net development finance. While the trend strains African budgets, analysts say it could also push governments toward greater domestic accountability as external funding tightens.
Reuters
