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Chinese loans transforming Africa?

Chinese loans transforming Africa?

Economic growth

Angola received a quarter of Chinese loans to Africa, that’s some 21.2 billion dollars over 15 years.

Ethiopia received 12.3 billion dollars, Sudan 5.6 billion dollars, Kenya 5.2 billion dollars and the DRC received 4.9 billion dollars making up 50 percent of all Chinese loans to Africa.

The China Africa research initiative of the Johns Hopkins university published results of a 9 year research on how Chinese money is transforming Africa.

The research indicated the Angolan state oil company, Sonangol received 84 percent of all the loans granted to extractive industries and almost all loans to Angola were guaranteed with oil.

The three sectors that received the most funding were transport, energy and the extractive industry.

Between 2000 and 2014 China extended 86.3 billion dollars worth of loans to African governments and state owned enterprises.

The largest financier of Angola was the China Development Bank followed by the Exim Bank of China and other institutions.

The average amount of Chinese loans to Africa has increased significantly from $132 million in 2000 to 13.59 billion in 2014.