Ethiopia is among the top ten African countries with the highest debt to China, according to a recent report released by Chatham House. This report shows the top 20 recipients of Chinese loans in Africa from 2000 to 2020, and Ethiopia’s debt to China stands at $13,728 billions USD.
Other African countries that feature in the list of top ten countries with the highest debt to China include Angola, Zambia, Kenya, Nigeria, Cameroon, Sudan, the Democratic Republic of Congo, Ghana, and Cote d’Ivoire. Angola tops the list with a debt of $42,619 million USD, followed by Ethiopia at a distant second.
Many of these countries have borrowed money from China to finance large infrastructure projects such as railways, ports, and highways. However, these projects have not always been successful, and many countries are now struggling to repay their debts. This has led to concerns that China is using debt to gain influence and control over African countries, which the former continues to deny.
According to Business Insider Africa, the COVID-19 pandemic and Russia’s invasion of Ukraine have exacerbated the challenges African countries face in servicing their debts, raising concerns of a potential debt crisis in the region. The International Monetary Fund and other organizations have been assisting African countries with debt restructuring and financial support, but more action is needed to achieve sustainable economic growth and reduce reliance on foreign lenders
Source: Business Insider