Andrea Shalal, Reuters, February 9, 2022
China’s development banks provided $23 billion in financing for infrastructure projects in sub-Saharan Africa from 2007 to 2020, more than double the amount lent by such banks in the United States, Germany, Japan and France combined, a new study showed.
The Center for Global Development think tank said a review of 535 public-private infrastructure deals funded in the region in those years showed that China’s investments dwarfed those of other governments and multilateral development banks.
Between 2007 and 2020, China Exim Bank and China Development Bank provided $23 billion in financing, while all other major development finance institutions combined provided $9.1 billion, the report found.
It noted that the main U.S. development finance agency, now known as the U.S. International Development Finance Corp, lent just $1.9 billion for infrastructure in the region during that period, less than a tenth of what China provided.
China’s lending to Africa has come under heightened scrutiny in recent years for lack of transparency and its use of collateralized loans, with economists at the International Monetary Fund and World Bank warning that many low-income countries are facing or already in debt distress.