African countries are now sending more money to China in debt repayments than they are receiving in new loans, marking a major shift in the financial relationship between Beijing and the continent, according to a new analysis cited by international media. The change represents a dramatic $52 billion reversal in net financial flows over the past decade.
Between 2015 and 2019, Chinese lending to Africa significantly outpaced repayments, resulting in a strong net inflow of funds that helped finance infrastructure and development projects across the continent. However, from 2020 through 2024, that trend reversed as new loan disbursements declined sharply while debt service payments remained high. The balance shifted from roughly a $30 billion net inflow to a $22 billion net outflow a swing of about $52 billion overall.
Analysts say the reversal is largely due to a steep drop in fresh Chinese lending to low- and middle-income countries, including many in Africa. At the same time, previously issued loans many tied to large-scale infrastructure projects have entered repayment phases, increasing the volume of money flowing back to Chinese lenders. This has effectively turned China into a net debt collector in the region.
The shift could make it harder for African governments to fund new infrastructure, public services, and development initiatives, particularly as many countries already face tight fiscal conditions and high borrowing costs. With less new bilateral financing available from China, countries may need to rely more heavily on domestic resources or alternative international lenders.
Meanwhile, multilateral institutions such as the World Bank and other development banks have increased their share of development financing to poorer nations, partially offsetting the decline in Chinese lending. The trend points to a broader realignment in global development finance, as China adopts a more cautious overseas lending strategy following years of rapid expansion. Visit www.jocomms.com for more news.