China’s $180.87 billion in African loan commitments raises debt pressure concerns in East Africa
China has become one of East Africa’s biggest lenders over the past two decades, financing major highways, railways, airports, power plants and telecom networks.
But as debt pressures rise across the region, there are more questions about whether East African countries are becoming too exposed to Chinese loans.
According to data from the Chinese Loans to Africa (CLA) Database, managed by Boston University’s Global Development Policy Centre, Chinese institutions signed 1,319 loan commitments worth $180.87 billion with 49 African governments and seven regional bodies between 2000 and 2024. The loans came from 42 Chinese lenders, including state policy banks, commercial banks and government agencies.
It is important to note that the database tracks loan commitments, not actual disbursements, repayments or defaults, which means that the figures are not the same as total debt owed.
Chinese lending to Africa accelerated sharply in the 2010s, especially after Beijing launched the Belt and Road Initiative (BRI) in 2013. In several peak years, annual commitments to Africa exceeded $10 billion, funding large-scale infrastructure projects such as railways and expressways.
More broadly, 2025 recorded the highest BRI engagement globally, with $128.4 billion in construction contracts and $85.2 billion in investments worldwide. China’s energy-related engagement alone reached $93.9 billion in 2025, more than double the level recorded in 2024, the highest since the BRI began.
Although recent lending to Africa has slowed compared to its 2016 peak, China remains deeply involved in strategic sectors.
China’s footprint in East Africa
In East Africa, Chinese loans have heavily targeted transportation and energy. Kenya has received billions for projects such as the Standard Gauge Railway, bypass highways and port-linked infrastructure.
Ethiopia has secured major financing for the Addis-Djibouti Railway, expressways and telecom expansion.
Uganda used Chinese loans to build the Kampala-Entebbe Expressway and upgrade oil-region roads.
Tanzania, Rwanda, Djibouti and Burundi have also tapped Chinese financing for roads, power projects and ICT systems.
Energy and telecom investments, especially in Ethiopia, Kenya and Uganda, have been central to China’s role in the region.
Meanwhile, recent data suggest Beijing is shifting strategy. Instead of funding mega-projects, China has increasingly moved toward smaller, more commercially viable and strategic investments.
This story is written and edited by the Global South World team, you can contact us here.
