China Forgives African Countries $3bn Loan

The Chinese government has shortlisted 17 African countries for debt forgiveness. A total of $3 billion will be wiped off from the loan book, according to the details provided by the second largest economy in the world.

Nigeria is one of the biggest debtors to the Chinese Peoples’ Republic with a total debt stock of over $3.121 billion going by the figures provided by the Debt Management Office, DMO.

The details provided by the Chinese government did not include the countries that have been shortlisted to benefit from the loan magnanimity, but it was learned from experts that the debt that will be written off are those whose tenor has matured in 2021.

According to experts who spoke to the magazine on the issue, the countries that qualified under this category are Angola, Congo DRC, Djibouti, South Africa, Kenya, Uganda, among others.

Speaking at the recently held Forum on China-Africa Cooperation, Chinese foreign minister Wang Yi said the gesture is proof that his government will continue to foster strong ties with the continent.

He explained that the PRC has proven through concrete actions that it is a development partner with African countries, adding that his country will continue to support infrastructure development in the continent through the Belt and Road Initiative.

“China will waive the 23 interest-free loans for 17 African countries that had matured by the end of 2021,” Mr Wang said at the Forum on China-Africa Cooperation, according to a statement.

“We will also continue to increase imports from Africa, support the greater development of Africa’s agricultural and manufacturing sectors, and expand co-operation in emerging industries such as the digital economy, health, green and low-carbon sectors.”

“What Africa wishes for is a favourable and amicable cooperation environment, not the zero-sum Cold War mentality,” Wang said.

Since the Forum on China-Africa Cooperation took place in Senegal in November 2021, Beijing has delivered $3 billion of $10 billion of credit facilities pledged to African financial institutions, Wang also said in the speech.