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The Danger of Too Much Chinese Debt in Africa

Analysis of China’s investment decisions in Africa can be informed by the debt crises of Venezuela and other high-risk countries in the Global South.

published by
China Africa Project
 on July 3, 2016

Source: China Africa Project

Under the auspices of One Belt, One Road (OBOR) and the Chinese government’s ‘Go Out’ overseas investment strategy, the country’s economic footprint in Africa is undeniably growing. That said, it is difficult to identify the pace at which investment is growing, how it compares to investment streams from other countries, and to what extent it is benefiting the general public in African countries. This podcast episode seeks to parse truth from myth and determine just how much China is investing in the economies of African countries and the liabilities of the resulting debt.

Carnegie–Tsingua’s Matt Ferchen joins Eric Olander and Cobus van Staden to discuss China’s loan practices in financing infrastructure projects in Africa.

This podcast was originally published by the China Africa Project.

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.