by Khadijat Kareem

Over the last two decades, China has established itself as Africa’s largest bilateral lender, helping bankroll key infrastructure projects on the continent.

Findings showed Chinese loans to Africa have higher interest rates compared to loans from the World Bank, Germany and France and other European countries.

For instance, research by AidData, an international development body at William & Mary University in the United states showed the interest rate for China’s loans is four times the size of typical loans with a repayment period of 10 years compared to 28 years for other types of loans and is focused on long-term infrastructure projects.

The report also showed Chinese loan contracts contain unusual confidentiality clauses that bar borrowers from revealing the terms or even the existence of the debt which makes it difficult to track the terms and conditions of the loans given.

African countries with the highest exposure to chinese loans

China is currently involved in 35 infrastructure projects in Africa mainly in the power generation, ICT and transportation sectors. Chinese loans are mostly used to finance long-term infrastructures, this translates to Chinese loans being mostly project-tied loans.

From 2000 to 2020 alone, China lent a total of $159.87 billion to African countries with Angola, Ethiopia and Zambia topping the list of the countries with the highest amount of loans. Nigeria is the 6th country with the highest number of Chinese loans in Africa.

Continue reading: https://www.dataphyte.com/latest-reports/four-things-to-know-about-chinese-loans-to-african-countries/

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And none of the projects is sited in Edo State.



God punish APC and their supporters.

Osariemen12:
And none of the projects is sited in Edo State.



God punish APC and their supporters.

lol

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Nigeria currently owe China less than $5 billion.
$5 billion is not too big enough to make us pee on our pants anytime we hear Chinese loans.