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.

A so-called repo loan —where Argentina would provide collateral such as reserves, US Treasury bonds, or future export revenues in exchange for dollars—appears to be gaining traction. The mechanism has been used before in Latin America , notably in Mexico’s 1995 rescue package, but not at this scale in Argentina. The possibility of the US directly buying Argentine bonds is also under consideration, a move that boosted bond prices and lowered the country’s risk index earlier this week.

Bessent has insisted that the support would come “without conditions ”, but experts remain sceptical. Economists believe Washington could impose implicit requirements, such as restricting Argentina’s interventions in the currency market or abandoning its current exchange rate bands in favour of a full float. Others suggest the US could pressure Milei to cancel or avoid renewing Argentina’s existing currency swap with China.

If confirmed, this would be Argentina’s ninth debt operation with the US Treasury in the past four decades. While the measures could bring short-term relief, analysts warn that the credibility of Milei’s government will depend not only on external backing but also on political stability and the country’s ability to implement lasting reforms.

The scheme was to be branded Ang Agraryong Tulay para sa Bagong Bayanihan ng mga Magsasaka — the PBBM Bridges — a nod to President Ferdinand “Bongbong” Marcos Jr.

The project was first rejected in February 2024, when South Korea’s Ministry of Economy and Finance warned it was prone to corruption and had a “low probability of success,” according to an investigation by South Korean news outlet Hankyoreh 21 .

Sharing the investigative report, President Lee Jae-myung said on social media that he had “ordered an immediate halt to the proceedings,” adding it was fortunate the project had not commenced. 

“There is significant meaning in preventing the unnecessary waste of 700 billion Korean won in taxpayer money and preemptively blocking risks that could lead to poor management and corruption,” he added.

South Korea’s Ministry of Economy and Finance formally informed Manila in April 2024 that it would not support the scheme, but the plan was later resurrected after pressure from People Power Party lawmaker Kweon Seong-dong on then-finance minister Choi Sang-mok, the investigation found.

Following a request for reconsideration, the Export-Import Bank of Korea commissioned a new feasibility study in October 2024 that pared the programme back from 350 bridges to 70 and cut the budget to about $80–100 million. 

Even so, South Korean officials concluded the project remained difficult to manage and vulnerable to graft because of the challenge of overseeing dozens of separate construction sites.

Responding to backlash following President Lee’s post, the Philippine Department of Finance said “no such loan exists,” adding it was committed to “full transparency and accountability” with bilateral partners.

These developments unfold against corruption scandals rocking both countries — South Korea has been shaken by allegations involving former first lady Kim Keon-hee, while the Philippines faces scrutiny over anomalous flood-control projects allegedly tied to dozens of lawmakers.

According to the minutes of the meeting , the loan and credit agreements signed with the IDA in May and June 2025 will cover:

These initiatives align with the DRC’s National Energy Compact and the Africa-wide Mission 300 , aiming to increase electricity access to 62% by 2030. The World Bank’s DRC portfolio now exceeds $7 billion, with $7.023 billion across 18 national and two regional projects as of March 31, 2025.

The $1.49 billion package, while vital for development, adds to the DRC’s debt burden, with a GDP of approximately $72 billion in 2024.

In Migori County, Deputy Chief of Staff Eliud Owalo has emphasised the urgent need for Kenyan universities to integrate artificial intelligence (AI) into their curricula to foster sustainable development. Speaking at the opening of a conference at Rongo University, he stressed the importance of preparing students for real-world challenges, noting that the future of Africa relies on ethical and locally relevant AI solutions. His remarks highlighted the role of education in addressing pressing issues across various sectors, such as agriculture and healthcare.

Empowering small businesses with grants

Deputy President Kithure Kindiki unveiled a Sh28 billion ($210 million) initiative aimed at supporting over 100,000 small businesses in Kenya as part of the government's strategy to uplift economic opportunities for struggling citizens. Announced during a youth empowerment event in Naivasha, the initiative will distribute funds across 70 constituencies, directly benefiting micro and small enterprises. Kindiki reiterated the government's commitment to fostering an inclusive economy, emphasising the importance of financial support for grassroots entrepreneurs.

Kenya Sugar Board warns on factory leases

The Kenya Sugar Board (KSB) has threatened to terminate the leases of four state-owned sugar factories unless private investors comply with conditions regarding modernisation, farmer support, and timely payments. CEO Jude Chesire highlighted that these stipulations aim to protect the welfare of sugarcane farmers amidst ongoing unrest over the Nzoia Sugar Factory's lease. Protests erupted from local leaders accusing the leasing agreement of endangering the region’s economic stability, bringing attention to the need for responsible management of the sugar industry.

Abuse of Kenyan domestic workers exposed

A distressing report by Amnesty International reveals the severe abuse experienced by over 70 Kenyan women employed as domestic workers in Saudi Arabia. Documented testimonies illustrate exploitation by recruitment agents and inhumane working conditions, with calls for greater protections from both the Kenyan and Saudi governments. The report underscores systemic issues within the labour export framework, highlighting the urgent need for reforms to prevent human rights violations in overseas employment.

Kenyan President's nicknames

Kenya's President William Ruto is known for his numerous nicknames, such as ‘Deputy Jesus’ and ‘El Chapo’, which exhibit changes in public perception over time. Initially viewed positively, recent monikers reflect growing dissatisfaction due to perceived failures in governance, including unpopular tax increases. Analysts note that these nicknames, while often humorous, also serve as a form of catharsis for Kenyans experiencing economic distress, demonstrating how social media influences political discourse and public sentiment.

The report attributes the losses to extensive tax exemptions granted to Chinese companies, which have continued to undermine the DRC’s financial gains from the deal. It also criticises the agreement's exclusion from the Congolese Mining Code, allowing unchecked fiscal privileges.

According to CNPV, in 2023 alone, the DRC lost an estimated $443 million in tax and parafiscal exemptions—amounting to 16% of the country's total tax expenditures.

Potential $7.5 billion loss over 17 years

Speaking at the report’s presentation, CNPV member Baby Matabishi warned that if the exemptions remain in place, the DRC could forfeit up to $7.5 billion over the next 17 years. These losses stem from  Law No. 14/005, which grants sweeping tax, customs, and parafiscal exemptions to collaboration agreements and cooperative projects, including the Sino-Congolese contract.

"This contract has remained structurally imbalanced since its inception," Matabishi stated. Adding that, "For years, we have warned about the problematic nature of these sweeping exemptions and the contract’s management outside of traditional government institutions."

Although the agreement was signed in 2008 without a solid legal foundation, the Congolese government justified the exemptions as necessary for repaying loans used to fund infrastructure projects and develop mining operations. Even after the introduction of a new Mining Code in 2018, the contract continues to operate outside its framework, maintaining its independent tax structure.

The South Sudan government has reached an agreement with Sudan's paramilitary group, the Rapid Support Forces (RSF), to restore operations along a critical 237-kilometre segment of the Greater Nile Oil Pipeline. This collaboration is pivotal, enabling the export of South Sudan's crude oil to the Port of Sudan. Historically, this pipeline facilitated the transport of more than 150,000 barrels of oil daily. However, it had ceased operations due to armed conflicts, resulting in severe economic repercussions—most notably, public salaries have gone unpaid for ten months, and prices for essential goods have surged. A recent joint workshop has confirmed plans for oil flow resumption; operations are anticipated to resume within 45 days, with initial shipments projected to arrive in three months. 

Ethiopia grants $738 million loan to South Sudan for major cross-broader project

Ethiopia has granted a $738 million loan to South Sudan to facilitate the construction of a major cross-border infrastructure project—a 220-kilometre road connecting the two nations. The terms stipulate that loan repayment will be sourced from South Sudan's crude oil sales to Ethiopia, effectively binding economic cooperation to infrastructural development. This initiative aligns with a prior agreement established in May 2024 and aims to bolster connectivity between South Sudan's Paloich, Maiwut, and Pagak regions and the Ethiopian border. The construction will be managed by Ethiopian contractors and includes a grace period of four years, followed by a ten-year repayment schedule. 

Kenyan president Ruto to visit South Sudan

Kenyan President William Ruto is scheduled to visit South Sudan to engage in critical discussions with President Salva Kiir concerning the Tumaini Initiative. This initiative is designed to facilitate peace talks between the South Sudan government and opposition factions that have yet to sign the peace agreement. This diplomatic mission comes in response to President Kiir’s request for Kenya to spearhead mediation, succeeding the Community of Sant’Egidio's previous role in Rome. The Presidential Press Secretary, Lily Martin Manyiel Ayuel, has underscored the importance of this visit in reaffirming Kiir’s commitment to the Tumaini Initiative amidst speculation of its potential abandonment. A prior meeting between Ruto and South Sudan officials addressed concerns regarding the initiative’s operational mechanisms, suggesting it should serve as a complement to the 2018 Peace Agreement rather than serve as a replacement, although acceptance of these terms by the opposition remains uncertain.

South Sudan grapples with hunger and cholera outbreaks

South Sudan is currently grappling with an acute humanitarian crisis characterised by escalating rates of hunger and cholera outbreaks. UN agencies, including the World Food Programme (WFP), World Health Organisation (WHO), and UNICEF, have called for heightened international support, noting that over half the population faces crisis-level hunger. Factors impeding aid include limited funding, geographical obstacles to isolated communities, and high food prices, exacerbated by economic instability and ongoing conflict. Moreover, the influx of refugees from Sudan, combined with severe flooding, has destroyed agricultural yields and displaced significant segments of the population. Currently, the WFP’s outreach has only reached 38% of those in dire need, often necessitating the provision of half-rations.

US embassy in South Sudan advocates for press freedom

The US embassy in South Sudan has highlighted the necessity of protecting journalists from harassment and detention. This statement coincides with the observance of the International Day to End Impunity for Crimes Against Journalists. The embassy has reiterated the demand for a thorough investigation into the controversial death of journalist Christopher Allen during South Sudan's civil conflict in 2017. According to Reporters Without Borders, South Sudan’s ranking has significantly plummeted to 136th on the World Press Index, a stark decline from 118th in 2023, signalling an increasing climate of impunity for crimes committed against journalists worldwide.

Nepal’s media sector, significantly impacted by the pandemic, faces a critical juncture with ongoing job losses and salary cuts for journalists. Increased government pressure and censorship during the pandemic are escalating, exemplified by new bills aimed at consolidating media control and vague guidelines restricting communication on platforms like Facebook and WhatsApp. Labour rights issues are also prominent, with many journalists filing complaints for unpaid wages, particularly against Kantipur Media Group, leading to legal actions against the company. The environment mirrors global trends of economic instability and political pressures on media, raising concerns about the future of independent journalism in Nepal, My Republica reports.

Nepalis injured in Mexico

Three Nepali nationals were injured in an incident involving Mexican security forces on October 2 near the Mexico-Guatemala border. All 11 Nepali nationals in the vehicle are currently in detention by Mexican immigration authorities. The Nepali Embassy in Washington DC confirmed that no Nepali died in the shooting, which reportedly involved multiple nationalities. The embassy is in contact with Mexican authorities for further updates, according to The Kathmandu Post .

Floods

Prime Minister Narendra Modi expressed solidarity with Nepal after heavy flooding and landslides last week resulted in over 236 deaths and significant property damage. In a letter to Nepal's Prime Minister KP Sharma Oli, Modi offered India’s assistance for relief and reconstruction efforts. As a result of the disaster, 173 people were injured, and 19 remain missing, with 17,120 having been rescued. Nepal's government is providing emergency relief and free medical treatment. Search and rescue operations are nearing completion, and efforts to assist victims’ families are ongoing across affected districts, ANI reports.

Tourism boom

In September 2024, Nepal recorded a record-breaking 96,305 foreign tourist arrivals, surpassing the previous high of 91,012 in September 2023, according to the Nepal Tourism Board (NTB). This marks a nearly 6% increase from last year. While arrivals from India decreased by 20% to 22,984 visitors, European and American tourist numbers rose significantly, with 17,104 Europeans (up 12%) and 11,549 Americans (up 36%) visiting in September. The overall total for January through September 2024 reached over 816,000 tourists, contributing positively to the Nepali economy. As reported by My Republica , the NTB aims to attract 1.6 million foreign tourists in the current fiscal year.

Petroleum grant from India

India has pledged a grant of Rs 15 billion for the construction of a petroleum pipeline and fuel storage facility in Nepal. An agreement between Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) was signed in New Delhi for projects including a new pipeline from Siliguri to Jhapa and an extension from Amlekhgunj to Chitwan. IOC will build a storage tank in Jhapa, while NOC will invest approximately Rs 9.5 billion for a storage facility in Chitwan. These projects aim to improve fuel supply efficiency, reduce transportation costs, and minimise environmental impact. The Siliguri-Jhapa pipeline will primarily serve the eastern region of Nepal, addressing the inadequacies of the current Motihari-Amlekhgunj pipeline, reports My Republica .

A recent workshop revealed that 2,000 - 3,000 people die annually in HCM City due to fine dust pollution from traffic. Associate Professor Vũ Anh Tuấn from the Centre for Transport Research at Việt Nam-Germany University discussed solutions with VOV. HCM City, with around eight million motorbikes and over one million cars, faces severe traffic jams and public health issues. Research from a Việt Nam-Germany cooperation program showed that PM2.5 and PM10 fine dust contribute to these deaths and reduced life expectancy, as per WHO limits, reports Viet Nam News .

Personal loans getting difficult

Banks in Vietnam are making it easier to get small personal loans, but the approval process is still strict. Borrowers of less than VND100 million (USD3,973) do not need a feasibility plan to repay but still have to provide financial records and other information. Some borrowers find the process inconvenient and are turning to consumer finance companies instead. Viet Nam News reports that bad debt at consumer finance companies and banks has been increasing, causing concern for the industry. Getting a personal loan will continue to be difficult and interest rates will remain high.

Enterprises increase in number

In July, Hà Nội authorities issued certificates to 3,007 new enterprises, marking a 20% increase compared to the same period last year. These new businesses have a total registered capital of VNĐ24.1 trillion (US$959 million), a 4% rise. However, 447 firms dissolved, and 2,015 suspended operations, up 52% and 43%, respectively. Additionally, 997 companies resumed operations, a 56% increase, adds Viet Nam News . In the first seven months of this year, nearly 18,000 new enterprises were established in Hà Nội, with a total registered capital of VNĐ162.1 trillion (USD6.4 million).

Market rebounds, VN-Index hits 1,200 points

Shares rebounded on Tuesday, August 6, with the VN-Index reaching 1,210 points after a sell-off on Monday, August 5. Viet Nam News reports that the market saw gains in blue-chip stocks and a strong performance in the securities sector. Foreign investors continued to withdraw capital from the main trading exchange.

Vietjet offers 30% off on Business and SkyBoss tickets

Vietjet is offering up to a 30% discount on Business and SkyBoss tickets for all domestic and international routes. The promotion is available for booking until August 31 and for flights between August 19 and November 30, 2024. SkyBoss tickets offer premium services and up to 50kg of checked baggage. Additionally, passengers flying directly between Vietnam and China will receive 20kg of free checked baggage, as reported by Viet Nam News .

"Antananarivo was built for 300,000 inhabitants. Now there are three million of us. This is going to reduce traffic jams and it's also a non-polluting form of transport," the Malagasy president said .

The project, financed through a $162 million loan from France, underwent safety tests throughout June. Despite the ambitious goals, there are concerns about the affordability of tickets, which are priced six times higher than bus fares, and the reliability of the power supply needed for operation.

President Rajoelina, re-elected for a third term last year and formerly the Mayor of Antananarivo, has defended the project against criticism that it deepens the country's debt to France, Madagascar's former colonial ruler.

"We have to dare to transform and develop our country. It's always the people who criticized who couldn't do anything. Whether we should have done this project or not, I say yes. You know, there was a lot of criticism of the construction of the Eiffel Tower. But what is it now that attracts tourists to France? Isn't it the Eiffel Tower?" Rajoelina stated.

To address affordability concerns, the government announced plans for subsidized fares for students and pensioners. The cable cars are scheduled to open to the general public in 2025.

President Rajoelina is expected to choose a firm to manage the transport facilities. Reports indicate that two French companies are vying for the contract to oversee both the technical and commercial operations of the cable car system.

The Bank of Tanzania has implemented a significant regulatory measure by declaring the prohibition of unlicensed digital lending entities within the nation. The public is advised to confirm the legitimacy of lenders' licenses before any transactions, in adherence to the recent mandate. This initiative by the central bank addresses the rising issues related to unethical loan services, such as the public shaming of individuals who fail to repay debts and the imposition of steep interest rates. It is anticipated that this ruling will affect more than 100 digital lending applications that are not officially registered, which serve nearly a third of the adult population who do not have access to conventional banking services, as reported by Africa24 .

First SGR railway operations

Tanzania's railway administration has launched the inaugural commercial service of the electric standard gauge railway (SGR), connecting Dar es Salaam with the Morogoro region, spanning a distance of 300 kilometres. On Friday, the Deputy Minister for Transport, David Kihenzile, announced that the first electric SGR journey transported 1,400 passengers at no cost from Dar es Salaam to Morogoro. He noted that the train departed from Dar es Salaam at 6:10 a.m. local time and reached its destination in Morogoro at 7:55 a.m. local time. "The maiden electric SGR commercial operations between the two destinations was historic," said Kihenzile. He further mentioned that President Samia Suluhu Hassan graciously covered the travel expenses for the round trip between Dar es Salaam and Morogoro, as a gesture of her support for the commencement of the commercial services according to CGTN .

Stricter traffic laws

Tanzania's Finance Minister Mwigulu Nchemba is advocating to overhaul existing traffic regulations with more stringent measures should they prove insufficient in curbing road fatalities. Addressing the parliament on Thursday, June 13, 2024, while presenting the Sh49.3 trillion (USD18.8 million) budget for the fiscal year 2024/25, Dr Nchemba suggested that if the prevailing laws are perceived as overly permissive, it may be necessary to elevate the categorisation of all traffic-related offences from minor infractions to major criminal acts, with the recommendation that they be considered equivalent to homicide where applicable, according to The Citizen . “Honourable Speaker, violation of road traffic laws, even by government drivers, is viewed as inconvenient and sometimes develops animosity when the traffic police remind us about road safety. It is high time the community adopted a zero-tolerance attitude against road accidents. We cannot tolerate any more losing our workforce easily. Traffic officers should show no leniency towards anyone violating the road traffic laws,” said Dr Nchemba.

Climate change mitigation

On June 14, 2024, the Tanzanian government emphasised the importance of safeguarding water bodies, woodlands, and biodiversity as a key strategy in bolstering the nation's initiatives against climate change. According to The Citizen , the Deputy Minister of State in the Vice President's Office, Khamis Hamza Khamis, highlighted this priority while addressing the Climate Change Forum hosted by Mwananchi Communications Limited (MCL), under the banner "Journey to a Greener and Sustainable Future." In his keynote address, Mr. Khamis referenced the renowned Kenyan environmentalist Wangari Maathai, underscoring her focus on the vital elements of the environment: water, forests, and living organisms. “We should conserve water sources and therefore the environment by prohibiting human activities close to water sources. Every stakeholder should actively take part in the tree planting and councils should meet the target of planting 1.5 million annually and ensure planted trees progress well to maturity,” he said.

Tanzania's budget leans on loans 

The Tanzanian government plans to fund 30% of its budget for the fiscal year 2024/25 through loans and grants, as revealed in the budget proposal presented to parliament on Thursday, June 13, 2024. Finance Minister Mwigulu Nchemba outlined that the country's projected expenditure for the upcoming fiscal year is Sh49.35 trillion. Of this, Sh33.25 trillion (USD12.7 million)is expected to be raised through domestic revenues by the central government, which constitutes 67% of the total budget, as reported by The Citizen .

According to AfDB, the agreement will enable Rwanda to raise €200 million competitively from international commercial banks, diversifying its funding sources and strengthening its position in the global financial market. This guarantee is further aligned with Rwanda's national strategy for transformation (2017-2024) and Vision 2050, establishing the country as a credible sustainable borrower.

“We are delighted to continue our partnership with the Government of Rwanda in its efforts to promote green and inclusive growth in line with its Vision 2050. This guarantee from the African Development Fund will enable Rwanda’s inaugural access to financing under its Sustainable Finance Framework at competitive terms,” said Solomon Quaynor.

The proceeds from this guarantee will be allocated to various green and social initiatives, including renewable energy, climate adaptation and mitigation, disaster risk reduction and management, biodiversity conservation, energy efficiency, forestry, food security, health and wellbeing, affordable housing, and access to social services projects.

Rwanda has already made significant strides in green and social initiatives. Notably, the country aims to increase electricity access to 100% of the population by the end of 2024, focusing on renewable energy sources like hydro, solar, and geothermal power.

The capital, Kigali, is also being developed as a green city, focusing on sustainable urban planning, green spaces, and eco-friendly infrastructure .

Rwanda has also made significant progress in forest conservation, aiming to maintain at least 18% of its land under forest cover. These efforts demonstrate the country's dedication to protecting natural resources and promoting sustainable development.

What they said

Commenting on the development, Uganda's Ministry of Finance wrote "We welcome the Framework Agreement for USD 500 million loan from the Korea EXIM Bank for the period (2024-2028) to finance infrastructure projects in Uganda. The framework agreement under the Korea Economic Development Cooperation Fund (EDCF) was signed between Finance Minister @MatiaK5 and the Korean Minister of Foreign Affairs Cho Tae-Yul in Seoul on the sidelines of the first Korea-Africa Summit" on X .

Ecuadorian Assemblyman Leonardo Berrezueta, who heads the Ecuador-Cuba Interparliamentary Friendship Group, has criticized the United States for maintaining Cuba on its list of alleged state sponsors of terrorism, calling it "incongruent". In an interview with Prensa Latina, Berrezueta argued that Cuba should be removed from the list because it is not only not a terrorist country, but also a humanitarian one. He questioned how Washington could justify including a country that exports doctors, knowledge, science, technology, and education to the world in a list of terrorist states. According to Prensa Latina , Berrezueta, a member of the Citizen Revolution movement, emphasised Cuba's positive contributions to global humanity, making its inclusion on the list all the more incongruous.

Fight against violence

The National Police of Ecuador has acknowledged that violence in the provinces of Los Ríos and Manabí is "out of control". Despite a reduction in violent deaths nationwide, the country is still experiencing a security crisis, with recent shootings in Manta and Durán. The government is taking measures, including temporarily moving the National Police Command and Joint Command of the Armed Forces to Manta, to address the issue. Many citizens are calling for urgent and comprehensive action against violence, reports Telesur .

Ecuador-Kentucky Guard partnership

The Ecuadorian Air Force welcomed a C-130H Hercules into its inventory with the help of the Kentucky Air National Guard's State Partnership Program. The aircraft will enhance Ecuador's air mobility capability and support domestic and humanitarian operations. The partnership demonstrates deep collaboration between the United States and Ecuador. According to Dvids , Kentucky's expertise with the C-130H will support Ecuador in managing maintenance and flying schedules.

IMF approves $4 billion

The Executive Board of the IMF has sanctioned a fresh 48-month plan for Ecuador under the Extended Fund Facility (EFF), granting access to funds up to US$4 billion. Following the Board's approval, Ecuador can promptly receive US$1 billion. This programme is designed to bolster Ecuador's economic stabilisation efforts, protect its dollar-based system, and establish a groundwork for enduring equitable growth. According to the IMF , the government's policy framework emphasises firming up fiscal and debt stability, broadening the social welfare network, fortifying the robustness of the financial sector, and enhancing overall transparency and governance.

5 dogs with military intelligence given medals

The Belgian shepherds — Dayco, Amanda, Apolo, Zeus, and Maly — demonstrated remarkable speed and accuracy. One dog swiftly detected narcotics and subdued the individual in possession, while another uncovered explosive concealed beneath a vehicle's tyre. Their prowess was on display during a ceremony at a military intelligence brigade located south of Quito, Ecuador's capital, where they were honoured with medals for their exemplary service. The ceremony saw the uniformed personnel standing in formation as the dogs were awarded their decorations. As reported by ABC News , Colonel Santiago Salazar, the commander of the Calicuchima General Intelligence Brigade, highlighted the vital contribution of these dogs to public safety and the battle against organised crime, acknowledging their indispensable role in these critical efforts.

Vietnam's Prime Minister has engaged in discussions with representatives from the World Bank regarding the bank's proposed $11 billion loan for Vietnam over the next five years. According to Viet Nam News , the loan is earmarked for infrastructure, energy, and agriculture projects aimed at fostering sustainable growth and tackling climate change issues. The World Bank has pledged to collaborate closely with Vietnam to ensure the effective functioning of its regional office and to assist Vietnam in achieving its development objectives for 2030 and 2050.

Coffee prices turnover

Coffee prices have settled higher due to concerns about the coffee crop in Brazil and Vietnam. This has led to an increase in options trading signals and unusual options activity. According to Barchart , a negative influence on the coffee market was the International Coffee Association's (ICO) report on Monday, revealing a 6.8% year-on-year increase in global coffee exports for February, reaching 11.33 million bags. Additionally, total global coffee exports for the period from October to February of the 2023/24 season surged by 11.1% year-on-year to reach 56.2 million bags.

Rice export gains

Vietnam's rice prices rose last week, putting the country at the top for export prices. The 5% broken rice is priced at $585 per ton, higher than Thailand and Pakistan. Vietnam earned $2.08 billion from exporting 3.23 million tons of rice in the first four months of the year. The country's rice output is expected to reach 43 million tons in 2024, reports the Sun .

Pepper price increment

Vietnamese pepper prices have been steadily increasing, reaching levels of $4.68-$4.71 per kilo. The Vietnam Pepper and Spice Association predicts that prices could hit new peaks of $13.75-$15.72 per kilo in the next decade. The market is not ready to cool down, with shortages and high demand pushing up prices. As reported by Viet Nam News , the International Pepper Community (IPC) also showed big fluctuations in trading sessions.

$136 million investment abroad

Vietnamese enterprises invested $136 million in new and existing projects abroad in the first five months of the year, with a focus on mining, manufacturing, and trading. The Netherlands and Laos were the top recipients of Vietnamese investment. As of May 20, Vietnam had 1,733 operational projects abroad, with the majority of investments in the mining and agro-forestry-fishery sectors. Laos, Cambodia, and Venezuela were the top recipients of Vietnamese investment, Viet Nam News reports.

"President of the UAE His Highness Sheikh Mohamed bin Zayed Al Nahyan assured (Pakistan of) the UAE's support in all circumstances and made the commitment of investing US $10 billion in multiple sectors," a statement from Pakistan's Prime Minister's Office said.

Sharif arrived in Abu Dhabi on Thursday, May 23. This visit marks the first time since his election this year. The visit is also a part of the country's efforts to ramp up foreign investments to bolster the economy which has suffered high inflation rates.

Meanwhile, after successfully concluding a short-term $3 billion IMF bailout programme last month, Pakistan has extended yet another warm welcome to an IMF team for discussions on the nation's budget and economic recovery strategies.

According to Reuters , IMF shared that its team led by mission chief Nathan Porter concluded discussions with Pakistani authorities after he visited the country on Thursday, May 23, 2024.

"The mission and the authorities will continue policy discussions virtually over the coming days aiming to finalise discussions, including the financial support needed to underpin the authorities' reform efforts from the IMF and Pakistan's bilateral and multilateral partners," Porter said .

Additionally, Pakistan is anticipated to request a minimum of $6 billion through the new programme and seek additional financing from the IMF under the Resilience and Sustainability Trust.

The loan agreement signed in Riyadh, Saudi Arabia's capital, is an effort by Uganda to diversify its external funding following protracted discussions with the World Bank to resume lending.

The funding injection from IDB comes as a response to Uganda's persistent efforts to advance its infrastructure funding. The allocated funds are earmarked for the construction of a bridge over the River Nile in the northwest region of Uganda, along with the development of approximately 105 kilometers of roads, as disclosed by the Finance Ministry.

“This funding will go towards construction of Masindi-Port Bridge where the ferry crosses river nile & connects to Renkunye-Apac-Lira road. The other road project is Kyenjojo-Kihura-Bwizi-Rwamwanja-Kahunge(68km)/Mparo-Bwizi (37km) road which connects Kamwenge town to Kampala Fort Portal highway,” the Ugandan Ministry of Finance posted on X.

Adding that, “IDB is the 3rd largest multilateral donor to Uganda contributing over 20% support in areas of roads, energy and education (skills development)”

The World Bank, historically a key financier for Uganda, on August 8, 2023, the World Bank made public its decision to halt any further financial support to Uganda, citing reservations about the nation's anti-homosexuality legislation, deeming it in direct opposition to the core values upheld by the World Bank Group. 

“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world. No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested.”

Addressing delegates at the summit, Adesina emphasized the detrimental effects of loans where countries pledge access to their natural resources, such as oil, in exchange for financial assistance. He argued that such agreements undermine the principles of transparency and equality within the global banking system.

“I think it's time for us to have debt transparency accountability and make sure that this whole thing of these opaque natural resource-backed loans actually ends because it complicates the debt issue and the debt resolution issue," Adesina said .

While resource-backed loans may seem like a lifeline for African nations with limited access to credit and capital, critics like Adesina caution against the potential pitfalls. Without stringent regulatory oversight, these loans could impose unfavourable terms, severely hampering a country's future revenues and access to credit.

"It may make sense if you actually use that money for the right things, but in most cases, there are no policy conditionalities," Adesina remarked, stressing the importance of responsible utilization of borrowed funds.

According to the Natural Resources Governance Institute, as of 2020, African countries had accrued up to $66 billion in resource-backed loans, primarily from Chinese and Russian state-owned institutions, as well as private entities like mining giant Glencore. Notably, the majority of these loans originated from the China Development Bank (CDB) and the China Exim Bank.

“The researchers identified 52 RBLs, 30 of which were taken by countries in sub-Saharan Africa and 22 in Latin America. They are distributed across 14 countries in the two regions. Thirty-eight were lent by Chinese policy banks; seven are from commodity traders; four are from other Chinese state-owned enterprises; one is from Korea Exim; one is from Nigeria; and one is from Russia's Rosneft. Forty-three of the loans are backed by oil, six by various minerals, two by cocoa, and one by tobacco. The total loan amount represented in the dataset is $164 billion, of which $66 billion went to Africa and $98 billion to Latin America,” the report read.

“Loan quality has been affected by public sector arrears, where delayed government payments to contractors have forced them to run overdue on existing loans to local banks. As a result, the sector regulatory NPL ratio increased by 170 basis points in the first nine months of 2023 to reach 15 percent at the end of the third quarter of 2023,” said Fitch in its analysis.

This assessment closely follows a similar warning issued by Moody's just two weeks ago, which also revised its outlook on Kenya's lenders to negative from stable. Moody's expressed concerns about the substantial levels of non-performing loans despite the solid profitability and liquidity levels of the banks.

Moody’s noted in its analysis that, “Despite solid economic growth, an array of challenges will weigh on borrowers’ creditworthiness and create difficult operating conditions for banks through 2024.”

The volume of non-performing loans (NPLs) in Kenya's banking sector witnessed a significant increase, rising by Ksh133.6 billion ($912 million) to Ksh621.3 billion ($4.24 billion). This surge pushed NPLs to account for 14.8 percent of the sector's loan book, compared to 13.3 percent in 2022.

Fitch Ratings anticipates that retail loans will be notably affected by a decline in real disposable incomes resulting from recent government tax hikes. The Kenyan shilling also faced challenges, depreciating by 21 percent in 2023, making it the worst-performing currency in the East African region.

The report, China’s Global Energy Finance Database , highlights that thirteen African nations have received loans of $1 billion or more for energy-related initiatives. Among these, Angola emerges as the largest recipient of Chinese financial aid for energy projects, securing a total of 10 separate loans since 2002. The most significant tranche, amounting to $15.1 billion, was disbursed in 2016.

Cumulatively, Angola has received a total of $24.4 billion in loans since 2002, making it the highest beneficiary on the continent.

Angola directed $10 billion from this substantial loan to recapitalize its state-run oil firm, Sonangol, which accounted for about five projects. The remaining funds were allocated to crucial hydroelectric projects in major cities such as Luanda and Cabinda, enhancing the country's energy infrastructure significantly. Under the unspecified projects category, there are 25 individual projects, all in the energy sector.

While Angola has not received further loans for energy projects from China in recent years, the financial contributions have played a significant role in supporting the nation's energy sector and promoting infrastructure development .

Other countries with significant figures are Zambia with $2.2 billion, South Africa with $4.5 billion, Zimbabwe with $1.3 billion, Sudan with $1.9 billion, Ethiopia with $1.8 billion, Ghana with $1.6 billion, Cote d'Ivoire with $1.6 billion, and Guinea with $1.5 billion.

The report emphasises the strategic presence of China's investment in enhancing the energy capabilities of African countries and contributing to the overall economic growth and sustainability of the region.

The data from this report encompasses nearly 21,000 projects in 165 low and middle-income countries, making it one of the most comprehensive datasets.

Beijing's overseas financing has helped it gain allies in the developing world but has also faced criticism from the West and some recipient countries, such as Sri Lanka and Zambia. These countries have expressed concerns that the infrastructure projects funded by China have left them burdened with debt they cannot repay.

The data shows changes in the sources and focus of China's overseas financing. While China's policy banks represented over half of the lending in 2013 when President Xi Jinping launched the Belt and Road Initiative, their share declined to 22% by 2021. The People's Bank of China and the State Administration of Foreign Exchange (SAFE) played a more significant role in lending in 2021, primarily providing bailout lending.

The report by AidData noted that "Beijing is navigating an unfamiliar and uncomfortable role—as the world's largest official debt collector."

The study also found that much of China's growing rescue lending is denominated in renminbi, with loans in the Chinese currency surpassing U.S. dollars in 2020. Overdue payments to Chinese lenders have also increased.

To manage repayment risk, China uses foreign currency cash escrow accounts it controls. This arrangement is controversial because it gives China debt seniority, potentially disadvantaging other lenders, including multilateral development banks, during coordinated debt relief.

AidData identified 15 countries, mainly in Africa, with escrow accounts totaling a combined $2.5 billion at their peak in June 2023. The report's lead author, Brad Parks, noted that they could not identify all such accounts as they are usually kept private. However, they found collateralized loans worth $614 billion, with cash as the primary collateral required by Chinese lenders, indicating that the amount in escrow accounts could be much higher than $2.5 billion.

China is also collaborating more with multilateral lenders and Western commercial banks. Half of its non-emergency lending in 2021 involved syndicated loans, with 80% of those loans alongside Western banks and international financial institutions.

The destinations of Chinese overseas lending have also shifted. Loan commitments to African countries decreased from 31% of the total in 2018 to 12% in 2021, while lending to European countries nearly quadrupled to 23%. Another dataset showed loan commitments to African countries falling to a 20-year low in 2022.