Economic growth in Sub-Saharan Africa is set to decelerate from 4.1 per cent in 2021 to 3.3 per cent in 2022, as a result of a slowdown in global growth, rising inflation exacerbated by the war in Ukraine, adverse weather conditions, a tightening in global financial conditions, and the rising risk of debt distress, according to World Bank.
China’s rolling back on loans would thaw growth in Africa and cannot be allowed by most investors, said Charles Robertson, the Global chief economist at Renaissance Capital Limited, citing Nigeria’s Legit.ng. According to German insurance giant Allianz, China might no longer be interested in providing Africa with the same amount of financial assistance such as loans, investments, and trades as before.
Citing the 2020 report, columnist Pascal Oparada argued that China’s share of debt owed to G20 nations spiked from 45 per cent in 2013 to 63 per cent towards the end of 2019. He said China has invested heavily in foreign countries to secure supply and promote exports and added that Beijing also buys half of the world’s raw materials.
According to Legit.ng report, Nigeria has emerged as the top debtor to China. Its debt to China accounts for 83.57 per cent of its bilateral debt as of June 30, 2022. “This brings the total debt owed by the West African country to China to about $3.9 billion,” the Nigerian publication added.
Other top African countries’ recipients of Chinese loans, include Angola, Ethiopia, Zambia, Kenya, Egypt, Nigeria, Cameroon, South Africa, Congo DRC, and Ghana. Experts have accused China of destroying the lives of millions of Africans who depend on it for their countries’ infrastructural and overall development, according to Legit.ng.