Chinese lending to Africa plummeted, new data showed, as Beijing shifted its focus to strategic investments on the continent.
Total lending in 2024 amounted to $2.1 billion, down by more than 90% from its 2016 peak, a Boston University report showed. The pivot partly reflects the poor performance of previous loans, after several African nations defaulted. In response, Beijing recalibrated its engagement with the continent, pursuing investments in strategic projects — notably in energy, mining, and transportation — amid an intensifying rivalry with Washington.
Chinese financing through the Belt and Road Initiative reached a record last year, with “Africa emerging as [a] key beneficiary,” Beijing mouthpiece China Daily reported.