It is important to note that these figures reflect loan commitments, not the total amount disbursed, repaid or currently outstanding.

Where the money went

Chinese loans have largely funded infrastructure projects across the continent. The biggest sectors include: transportation  - railways, highways and ports in countries such as Nigeria, Kenya, Ethiopia, Angola, amongst others. The energy sector - power plants, transmission lines and hydropower projects in Ghana, Guinea, Nigeria and Côte d’Ivoire; water and sanitation - projects in West African countries, including Côte d’Ivoire, Ghana and Nigeria; education and defence - Smaller but notable investments in school facilities and military equipment.

Nigeria is among the largest recipients in transport financing, while Ghana features prominently in both energy and defence-related loans. Countries such as Angola, Ethiopia, Zambia and Kenya have also received substantial financing over the years.

Chinese lending to Africa rose sharply during the 2010s, especially after the launch of the Belt and Road Initiative (BRI), with annual loan commitments in some years exceeding $10 billion. More recently, China’s global BRI engagement has reached record levels. In 2025, BRI activity hit its highest level ever, with $128.4 billion in construction contracts and about $85.2 billion in investments worldwide. Energy projects accounted for a major share of that expansion. China’s energy-related engagement in 2025 climbed to $93.9 billion, more than double the level recorded in 2024 and the highest since the BRI began. 

Chinese loan commitments to African countries dropped to $7 billion in 2019, a 30 percent decline from the $9.9 billion recorded in 2018.

More recently, lending fell even further. In 2024, Chinese loans to Africa declined to $2.1 billion, nearly half the previous year’s level and the first annual drop since the COVID-19 pandemic, according to data released by Boston University’s Global Development Policy Centre. The figure is less than a tenth of the $28.8 billion peak recorded in 2016. The decline was attributed to Beijing’s shift away from financing massive infrastructure projects such as railways and highways, and toward smaller, more commercially viable and strategically targeted investments.

Is Africa deep in debt?

China is a major creditor to several African nations, but it is not Africa’s only lender. African governments also borrow from multilateral institutions such as the World Bank and African Development Bank, private bond markets (Eurobonds), and other bilateral lenders. 

In some countries, Chinese loans make up a significant share of external bilateral debt. In others, they represent a smaller portion compared to commercial borrowing. 

Chinese loans have helped build roads, railways, dams and power plants that many African governments say are essential for economic growth. At the same time, rising global interest rates, currency depreciation and weak revenues have made repayment harder for some countries.

The key question is not just how much Africa owes China, but whether these projects generate enough economic return to service the debt.

Kenya’s Bold Step: Converting Dollar Debt to Yuan

Some African governments are rethinking how they borrow. Kenya has taken a pioneering step by converting $3.5 billion of loans from China into yuan-denominated debt, a move expected to save the country $215 million annually. This strategy reduces exposure to the strengthening U.S. dollar and signals a broader push toward “de-dollarisation”, diversifying currency options to stabilise national economies and increase fiscal independence.

Angola’s Return to Global Markets

While Kenya experiments with currency diversification, Angola has chosen to re-engage international investors. The country has issued five- and ten-year Eurobonds to raise $1.5 billion, marking its first bond sale since 2022. Led by major global banks including Citi, Deutsche Bank, JPMorgan, and Standard Chartered, the sale points to renewed investor confidence in African economies. Yet, experts warn that poor credit ratings still force many countries to borrow at interest rates as high as 12%, as noted by MacDonald Goanue of the ECOWAS Bank for Investment and Development.

Creative Financing and Regional Solutions

To ease the debt burden, several African nations are adopting innovative financial tools. Securitisation, which allows governments to use future revenue streams as collateral, and debt-for-nature swaps, which forgive debt in exchange for environmental protection, are gaining traction. Additionally, regional banks are offering concessional loans with lower interest rates and longer repayment periods. There is also growing advocacy for trading in African currencies and building stronger regional financial institutions to reduce reliance on Western lenders.

From Necessity to Strategy

Africa ’s debt story is evolving from borrowing out of necessity to borrowing with strategy. However, global inflation, commodity price drops, and geopolitical instability still threaten progress. As Kenya, Angola, and others demonstrate, African countries are reclaiming agency in the global financial system. The focus is shifting from repayment to reimagining the structures that have historically constrained the continent’s growth.

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World Reframed is produced in London by Global South World, part of the Impactum Group. Its editors are Duncan Hooper and Ismail Akwei.

ISSN 2978-4891