Loans

The big political drama in Washington in the next few months will be the fight over the federal debt ceiling. The worst-case scenario is that Congress refuses to raise the ceiling and the U.S. Treasury defaults on its debt. Since U.S. treasury debt...

To discuss accusations that China engages in so-called “debt trap diplomacy,” Eric and Cobus spoke with Deborah Brautigam, a Johns Hopkins University Professor and Director of the China-Africa Research Initiative in Washington, D.C. The “debt trap”...

In an ongoing series that explores different interpretations of what exactly is the Belt and Road Initiative (BRI), Eric and Cobus are joined by Zhu Zheng, an international affairs columnist for Caixin and a research fellow at the China-Eastern...

The problem with the “debt trap” theory is that it too often strips Africans of their agency in the negotiating process. That either they don’t know what they are doing or they’re simply negotiating bad deals. While both of those may be true, in...

Pretty much every major economic indicator suggests that the Chinese economy will continue its downward momentum in 2019. Industrial production, retail sales, and even the once red-hot property market are all showing real signs of weakness. Some...

China’s growing engagement with African countries got a publicity boost on September 3 and 4 with the latest Forum on China-Africa Cooperation (FOCAC) summit. The triennial event brought leaders and officials from 53 African countries and the...

Nairobi-based international development economist Anzetse Were suggests in a new paper that Kenya’s leaders, not China, should be the ones held accountable for borrowing too much money without a detailed, transparent plan on how to repay the loans...

China announced a U.S.$60 billion financing package for African states to build out new roads, airports, railways, and other needed infrastructure. While no one questions the need for infrastructure, there are legitimate concerns as to whether it...

For the past year or so, senior U.S. government officials have been accusing China of engaging in so-called “debtbook diplomacy,” a tactic that Washington contends intentionally burdens developing countries with billions of dollars of loans. When...

China has loaned Angola an estimated U.S.$60 billion dollars since the two countries established diplomatic relations back in 1983, making it one of the top destinations for Chinese financing in Africa. Angola is especially attractive for the...

There is a certain irony when a U.S. envoy travels to Africa to warn his hosts about the dangers of borrowing money from China. The United States, after all, is the world’s most indebted country and borrows more from China than any other nation in...

Quietly, and largely out of sight, China has emerged to become a major player in the foreign aid space, challenging institutions and norms long established by the West. Although China’s international development budgets remain a tightly guarded...

Every week seemingly brings a new announcement of a Chinese-financed mega project somewhere in Africa. Last week’s announcement of a $5.8 billion power station in Nigeria that will be financed and built by Chinese state-owned companies is typical of...

China now owns more than half of Kenya’s external debt, and that figure is likely to grow even higher as President Uhuru Kenyatta turns to Beijing to finance large infrastructure projects across the country. Most recently, China completed the first...

In this edition of the China in Africa podcast, we pull the focus back to look at China’s rapidly evolving foreign policy agenda in this new era of Western populism led by Donald Trump in the United States.François Godement, Director of the Asia and...

As China's economy slows and defaults rise, 'bad loan' managers say they spot an opportunity to pick up bargains, because lenders are eager to shed toxic debt that might otherwise poison the broader financial system. Yet questions...

In the first quarter of 2016, Chinese debt rose to 237 percent of GDP—a level comparable to that of the U.S. or the Eurozone and yet much larger than that of most developing economies, according to analysis by The Financial Times. Additionally,...

When finished, the new deep-sea port in the southern Cameroonian city of Kribi will likely become a major gateway for all of Central Africa. This will be Cameroon’s only deep-sea port that can accommodate the larger inter-continental trading ships...

It’s not really news anymore when China announces yet another massive infrastructure construction deal in Africa. Typically these deals are done at the national level, so when Beijing and the African Union signed a major transport infrastructure MOU...

Last week The New York Times reported U.S. opposition to China's plans to launch a regional development bank to rival the World Bank and the Asian Development Bank. If, as some say, the the launch is a fait accompli, should Washington focus...

Harare-based economist and columnist Vince Musewe doesn’t mince words in his criticism of Zimbabwe’s growing financial dependence. Beijing is “bleeding Zimbabwe dry” through loans and Musewe says enough is enough. He is calling on Robert Mugabe’s...