The China in Africa Podcast It's Payback Time For a Lot of Those Chinese Loans
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Jun 27, 2025 Riley Duke, a research fellow at the Lowy Institute and author of 'Peak Repayment,' dives into the staggering $35 billion in Chinese loans that African nations must repay this year. He uncovers the intense pressure on these governments, especially in the world’s poorest countries, as grace periods expire. Duke explores the dilemma faced by Chinese creditors, balancing the need to collect debts while avoiding default risks for vulnerable nations. The discussion reveals complex dynamics in Chinese lending practices and the broader implications of global debt crises.
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China's Shrinking African Debt Role
- African external debt from China has decreased from 20% to 12% of total debt portfolio.
- Chinese lending has sharply dropped, worsening financing access during a critical debt repayment phase.
2025 Debt Repayment Surge
- Developing countries face $35 billion repayment obligation to China in 2025, with $22 billion from the poorest 75 countries.
- This repayment surge stems from loans taken in the mid-2010s exiting grace periods, causing budget strains.
Borrower and Creditor Accountability
- Borrowing countries must exercise responsibility in taking on loans to avoid unsustainable debt.
- Creditors and borrowers both share accountability in managing debt prudently for development goals.