{"id":298234,"date":"2026-01-22T20:12:07","date_gmt":"2026-01-22T20:12:07","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/298234\/"},"modified":"2026-01-22T20:12:07","modified_gmt":"2026-01-22T20:12:07","slug":"chinas-africa-lending-nearly-halved-in-2024-shifts-to-yuan-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/298234\/","title":{"rendered":"China&#8217;s Africa lending nearly halved in 2024, shifts to yuan"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Six African projects funded in 2024, including in Kenya and Egypt<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Yuan loans replace dollar in China&#8217;s Africa strategy shift<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">BU data shows shift to cautious lending, strategic partnerships<\/li>\n<\/ul>\n<p>JOHANNESBURG, Jan 22 (Reuters) &#8211; Chinese lending to Africa nearly halved to $2.1 billion in 2024, the first annual decline since the COVID-19 pandemic, as the country shifts to selective, strategic projects, according to data released on Wednesday by Boston University.<\/p>\n<p>The lending, which is less than a tenth of the $28.8 billion peak in 2016, reflects China&#8217;s move away from large infrastructure projects such as railways and roads and toward smaller, commercially viable projects, according to Boston University&#8217;s Global Development Policy Center.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/chinas-africa-lending-nearly-halved-2024-shifts-yuan-2026-01-21\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fasia-pacific%2Fchinas-africa-lending-nearly-halved-2024-shifts-yuan-2026-01-21%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>&#8220;As the era of billion-dollar projects winds down, China&#8217;s evolving financial instruments may define a new, more selective phase of engagement,&#8221; the report said, noting that Chinese lending had consistently exceeded $10 billion annually between 2012 and 2018.<\/p>\n<p>The chart shows the value of Chinese loan commited to Africa between 2000 and 2004 in billions of USD. A record was reached of nearly 30 billion dollars in 2016 partly due to a 10 billion dollar refinancing in Angola<\/p>\n<p>Beijing had to take losses on some loans after the economic stress of the pandemic pushed Zambia, Ghana and Ethiopia into default.<\/p>\n<p>The university&#8217;s Chinese Loans to Africa Database, which tracks lending to the continent going back to 2000, found that China has increasingly pivoted away from dollar-denominated megaprojects <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/finance\/debt-boom-signals-yuans-arrival-funding-currency-2025-12-19\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">characteristic of the early Belt and Road Initiative<\/a> and toward targeted, smaller-scale financing denominated in yuan.<\/p>\n<p>&#8220;China increasingly employs RMB-denominated loans, small and medium-sized enterprise (SME) on-lending via domestic banks in African countries, and (foreign direct investment),&#8221; the report said, pointing to a shift to FDI rather than traditional development loans.<\/p>\n<p>In 2024, the most recent year for which data is available, all Chinese infrastructure loans to Kenya were yuan-denominated, the research showed.<\/p>\n<p><a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/africa\/kenya-converts-railway-loan-china-into-yuan-save-interest-2025-10-07\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">Kenya also converted $3.5 billion worth of loans<\/a> from Beijing to yuan in October. Ethiopia is also considering the shift, while the China Development Bank and the Development Bank of Southern Africa signed a deal last year for the first yuan-denominated financing cooperation.<\/p>\n<p>Financing for projects exceeding $1 billion also declined in favor of funds channeled via regional African banks and directed toward projects perceived as commercially viable.<\/p>\n<p>A graph showing Chinese loan commitment to individual countries. The bulk of lending has been to Angola, Ethiopia, Kenya, Zambia, Nigeria and Egypt<\/p>\n<p>In 2024, China funded just six projects across the continent &#8211; two in Angola, and one each in Kenya, Egypt, the Democratic Republic of Congo, and Senegal.<\/p>\n<p>Angola, which secured $1.45 billion for power grid and road upgrades, was the top recipient, reflecting Beijing&#8217;s focus on long-standing partnerships and strategic projects.<\/p>\n<p>&#8220;Taken together, the data point to a pattern characterized by more conservative direct lending, coupled with market-based financial tools that reduce costs, mitigate debt risk, and support sustainable growth objectives,&#8221; the report said.<\/p>\n<p>BACKING AWAY FROM INFRASTRUCTURE<\/p>\n<p>Mengdi Yue, a researcher at Boston University&#8217;s Global Development Policy Center, told Reuters that they expected China had continued to pivot away from large-scale infrastructure lending in 2025 &#8211; and toward lending via local and regional banks.<\/p>\n<p>&#8220;It&#8217;s a financing model \u2026 local banks are responsible for distributing the loans to support SMEs or trade finance or local needs,&#8221; Yue told Reuters.<\/p>\n<p>Yue and Boston University&#8217;s Kevin Gallagher said the scale of Beijing&#8217;s 2025 lending was also likely influenced by the continent&#8217;s economic growth forecasts, which top 4%, as well as its population growth.<\/p>\n<p>&#8220;There&#8217;ll be two-and-a-half-billion people there by 2060,&#8221; he added, underlining the continent&#8217;s growing strategic importance.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Colleen Goko in Johannesburg; Editing by Matthew Lewis<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Six African projects funded in 2024, including in Kenya and Egypt Yuan loans replace dollar in China&#8217;s Africa&hellip;\n","protected":false},"author":2,"featured_media":298235,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[82772,2786,82703,82758,85715,85716,2097,85718,79,84893,53515,84897,88447,83806,82710,3737,82702,83116,179,18,55396,82578,32356,82503,45748,19,17,105113,83122,87207,82565,82508,82534,84334,82533,82707],"class_list":{"0":"post-298234","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-afr","9":"tag-asia","10":"tag-asxpac","11":"tag-bisv","12":"tag-bnk","13":"tag-bnks","14":"tag-bri","15":"tag-bsvc","16":"tag-business","17":"tag-cdm","18":"tag-cn","19":"tag-dbt","20":"tag-destozabsm","21":"tag-destozatpm","22":"tag-destseabs","23":"tag-dip","24":"tag-easia","25":"tag-eco","26":"tag-economy","27":"tag-eire","28":"tag-emea","29":"tag-emrg","30":"tag-fin","31":"tag-fins","32":"tag-gen","33":"tag-ie","34":"tag-ireland","35":"tag-loa","36":"tag-mce","37":"tag-mtgfx","38":"tag-mtpix","39":"tag-pol","40":"tag-topcmb","41":"tag-topicworld-china-slug","42":"tag-topnws","43":"tag-trd"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115940579375755229","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/298234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=298234"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/298234\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/298235"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=298234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=298234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=298234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}