China Becomes Net Debt Collector in Africa with $52bn Swing, Report Shows

China has shifted its financial role in Africa from a major lender to a net debt collector, marking a significant $52 billion swing over the past decade. A new report by the Data for Development Finance Observatory reveals that China has moved away from large-scale lending to African governments, with repayments exceeding new funds across the continent.

This shift reflects a structural change in China's engagement with Africa, as the net financial flow has turned negative in the last five years. African countries have been paying down existing obligations amidst a slowdown in new Chinese lending, leading to a rise in debt servicing obligations and additional strain on public finances.

China's lending to Africa fell to just $2.1 billion in 2024, down from $28.8 billion in 2016, as it increasingly focuses on recovering outstanding debts. Nigeria, for instance, has seen a slight decline in its external bilateral loan stock owed to China, standing at $5.3 billion in December 2024.

This realignment in global development finance highlights China's changing approach to financing African projects.