China Cancels 23 Interest-Free Loans For 17 Countries In Africa 

While 17 other African nations will have their loans annulled as China attempts to write off debts, certain African countries stand to gain from China’s $10 billion International Monetary Fund (IMF) reserve.

By Omotayo Olutekunbi

According to a Bloomberg article, Wang Yi, the foreign minister of China, revealed this stance when chatting with a small group of Chinese and African diplomats at a Forum on China-Africa Cooperation (FOCAC) gathering.

Following the FOCAC summit in Senegal in November of last year, the gathering was a follow-up meeting.

As the largest bilateral lender in Africa, China has become well-known for funding important infrastructure projects across the continent.

It was also made known that some other nations would still profit from the Asian superpower’s $10 billion IMF funds, which are used to carry out the follow-up actions of the eighth ministerial conference of FOCAC, even though the specifics of the 17 benefiting nations and the amount were not made public.

According to Yang Wi, “We will also continue to increase imports from Africa, support the greater development of Africa’s agricultural and manufacturing sectors, and expand cooperation in emerging industries such as the digital economy, and health, green and low-carbon sectors“

Data from the China Africa Research Initiative shows that between 2000 and 2020, administrations of several African countries and Chinese lenders made approximately 1,180 loan pledges totaling $160 billion (CARI).

According to loan documentation, mining, electricity, and transportation projects accounted for two-thirds of the facility.

The countries that had borrowed the most money from China in terms of dollars were Angola, Zambia, Ethiopia, Kenya, and Cameroon.

Although the high debt profile of Nigeria regarding Chinese loans was noted, it was not made clear in the specifics of the benefited nations whether Nigeria was included.

Checks on the Debt Management Office (DMO) revealed that as of March 31, 2020, Nigeria has borrowed $3.121 billion from China in total.