Chinese lending to Africa nearly halves in a year as priorities shift to smaller projects

Chinese lending to Africa dropped by nearly half to US$2.1 billion in 2024 compared with the previous year, according to a new report.

The fall, from US$3.9 billion in 2023, was part of a decade-long trend. Lending had been on an upwards trajectory since 2006 and peaked between 2012 and 2018 – a period that saw the launch of the Belt and Road Initiative when lending passed the US$10 billion mark each year.

At its height, in 2016, Beijing lent US$28.8 billion, but the total has not passed the US$5 billion mark since 2020.

Researchers at the Boston University Global Development Policy Centre, which released the report on Wednesday, said the shift aligned with Beijing’s strategy of moving beyond multibillion-dollar loans to governments.

Instead, it now prefers to target smaller, more strategic projects and invest in commercially viable sectors, such as technology.

Beijing has also shifted from the dollar to its own currency, the yuan, to protect both sides from the risks of US currency fluctuations.