Breaking the myth of Chinese debt trap in Africa

The NTU-SBF Centre for African Studies hosted a seminar (7 Jun) where Eric Olander, Editor-in-Chief of the China Global South Project busted the myth of Chinese debt trap narrative in Africa. Although Chinese lending to Africa has increased fivefold since 2010 and Beijing has become one of the most significant source of finance for the continent the accusation that China has been dragging African borrowers into a debt trap is not accurate.

Eric presented data produced by the China Africa Research Initiative and the Boston University Global Development Policy Centre that showed Chinese lending dropping significantly since 2016, when it peaked to more than US$28 billion.

He also showed that Chinese lending was going predominantly to one African country – Angola. “Although China’s role as a major credit provider is significant, but the debt that African governments owe to China is a fraction of their debt,” he told the audience.

The riveting discussion was moderated by Centre Director Amit Jain followed by a casual networking evening of food and wine. More than 50 participants, including students, professionals, entrepreneurs and academics attended the event.