China's Net Outflows to Africa Decline by $52 Billion in Past Decade - Report

A recent report revealed that China's financial relationship with Africa has experienced a significant transformation over the past decade. China, which was once a major lender to African countries, has now become a net extractor, with net outflows falling by $52 billion.

In contrast, multilateral lenders have stepped up their financial support to Africa, providing 56% of the net flow in the period from 2020 to 2024. The changing landscape is attributed to China tightening its overseas lending practices in response to increasing debt risks and a conservative approach to foreign exposure.

The data indicates a sharp decline in Chinese financing to Africa, leading to a rise in debt servicing obligations for African countries. Publicly guaranteed long-term external debt from private sources has also decreased by 19%, with net new resources declining to $7.3 billion in the last five years.