Chinese loans to Africa down by nearly 50 per cent as priorities shift to smaller projects
Report says the decline highlights a ‘more selective phase of engagement’ by Beijing
Chinese lending to Africa dropped by nearly half to US$2.1 billion in 2024 compared with the previous year, according to a new report.
The decline formed part of a decade-long trend. Lending had been on an upward trajectory since 2006 and peaked between 2012 and 2018 – a period that saw the launch of the Belt and Road Initiative – when it passed the US$10 billion mark each year.
At its height in 2016, Beijing lent US$28.8 billion. But since 2020, the annual total has not crossed the US$5 billion mark.
In 2024, lending fell by 46 per cent from US$3.9 billion in 2023.
Researchers at the Boston University Global Development Policy Centre, which released the report last Wednesday, said the shift reflected China’s move away from multibillion-dollar loans to governments towards smaller, more strategic projects in commercially viable sectors, such as technology.
Beijing has also shifted from the dollar to its own currency to protect both sides from the risks of US currency fluctuations.