As China begins to hold back financial help for the world, countries like Nigeria and other African nations seem to be stuck in a limbo.
Economic growth in Sub-Saharan Africa is set to decelerate from 4.1% in 2021 to 3.3% in 2022, as a result of a slowdown in global growth, rising inflation exacerbated by the war in Ukraine, adverse weather conditions, a tightening in global financial conditions, and the rising risk of debt distress, according to the World Bank.
China’s rolling back on loans would thaw growth in Africa and cannot be allowed by most investors, said Charles Robertson, the global chief economist at Renaissance Capital Limited, citing Nigeria’s Legit.ng.
According to German insurance giant Allianz, China might no longer be interested in providing Africa with the same amount of financial assistance such as loans, investments, and trades as before.
Citing the 2020 report, columnist Pascal Oparada argued that China’s share of debt owed to G20 nations spiked from 45% in 2013 to 63% towards the end of 2019. He said China has invested heavily in foreign countries to secure supply and promote exports, and added that Beijing also buys half of the world’s raw materials.
According to a Legit.ng report, Nigeria has emerged as the top debtor to China. As of 30 June , 2022, its debt to China accounted for 83.57% of its bilateral debt.
“This brings the total debt owed by the West African country to China to about $3.9 billion,” the Nigerian publication added.
Other top African countries that received the loans, include Angola, Ethiopia, Zambia, Kenya, Egypt, Nigeria, Cameroon, South Africa, the Congo, and Ghana.
Experts have accused China of destroying the lives of millions of Africans who depend on it for their countries’ infrastructural and overall development, according to Legit.ng.
