China is an important economic player in Africa. In 2021 alone, China accounted for nearly US$5 billion in foreign direct investment in African countries. The rapidly increasing Chinese presence across Africa has become a contentious issue both for Beijing and African governments.
In particular, mega projects funded by China have resulted in public controversies about the relationship between external investments and public debt. China is Africa’s biggest bilateral lender. In 2020, it held over US$73 billion of Africa’s public debt and nearly US$9 billion of its private debt. Due to this, US Treasury Secretary Janet Yellen has accused China of leaving countries “trapped in debt”.
