{"id":47616,"date":"2026-01-27T05:43:05","date_gmt":"2026-01-27T05:43:05","guid":{"rendered":"https:\/\/www.europesays.com\/africa\/47616\/"},"modified":"2026-01-27T05:43:05","modified_gmt":"2026-01-27T05:43:05","slug":"african-nations-now-send-more-money-to-china-than-they-receive-in-new-loans","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/africa\/47616\/","title":{"rendered":"African nations now send more money to China than they receive in new loans"},"content":{"rendered":"

China shifts from net finance provider to net receiverAfrica sees $52 billion swing in five-year net finance flowsMultilateral institutions increase global net financing contributions by 124%JOHANNESBURG, Jan 27 (Reuters) – China’s role as a leading financier to developing nations has shifted<\/a> over the \u200cpast decade, with new loans to poorer countries falling sharply while debt repayments continue to rise, according to analysis released by ONE Data.<\/p>\n

The inaugural report by the ONE Data initiative found that many low- and middle-income countries \u2014 particularly in Africa \u2014 are now transferring more funds \u200cto China in debt payments than they receive in fresh financing \u200bfrom the world’s second-largest economy.<\/p>\n

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The swing has coincided with a surge in net financing from multilateral institutions, which have become the main source of development finance once debt-service outflows<\/a> are \u200dtaken into account.<\/p>\n

Multilateral lenders increased net financing by 124% over the past decade and now provide 56% of net flows, equivalent to $379 billion between 2020 and 2024, the analysis found.<\/p>\n

“The fact that there’s \u2060less lending coming in, but that previous lending from China still needs to be \u200dserviced \u2014 that’s the source of the outflows,” said David McNair, executive director at ONE Data.<\/p>\n

\"AfricaAfrica has experienced the most dramatic reversal in Chinese finance. It went from receiving $30 billion to paying out $22 billion, a $52 billion swing.<\/p>\n

In \u200c2020-24, the \u200cmost recent period for which data is available, Africa saw the largest impact, with an inflow of $30 billion in 2015-19 turning to an outflow of $22 billion.<\/p>\n

The data does not include cuts<\/a> that took effect in 2025. The closure of the U.S. Agency for International \u2060Development last year and a \u2060drop in allocations<\/a> \u200bfrom other developed countries has already hit developing economies, especially in Africa.<\/p>\n

Once 2025 data becomes available, it is likely to show a large drop in Official Development Assistance flows, said McNair.<\/p>\n

He said \u200dthe trend was “a net negative” for African nations, as many governments face difficulties funding public services and investment – but would at the same time promote domestic accountability as governments rely less on external \u200bfinancing.<\/p>\n

The report also highlighted a broader decline in bilateral \u200dfinance flows and private external debt – also trends likely to be exacerbated by aid cuts from 2025 onwards.<\/p>\n

Reporting Colleen Goko; editing by Karin Strohecker and Kevin Liffey<\/p>\n

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