Chinese loans to Africa fell below $1 billion last year, the lowest level in nearly 2 decades. The cutback marks a shift away from big ticket infrastructure financing, as several African countries struggle with escalating public debt. China buys 20% of the region’s exports from metals, minerals, and fuel and provides most of the manufactured goods and machinery imported by Africans. However, China’s recovery from the pandemic has slowed recently due to a property downturn and flagging demand for its manufactured goods. The IMF cut its growth predictions for China in October, citing a real estate crisis. A 1% decline in China’s growth rate could reduce average growth in Sub-Saharan Africa by about 0.25% within a year according to the IMF.
Source : Zawya by LSEG
