Developing countries in Africa are losing a champion that for years allowed them to borrow at cheaper rates than they could find in capital markets. China, Africa’s largest bilateral creditor, has been scaling back lending in the region amid its worsening growth woes. “China’s reticence in debt restructuring and softening of its lending terms is bound to heighten vulnerabilities at these frontier economies. With China stepping away, heading to international bond markets may be the only option to get financing -- but for some, that’s becoming prohibitively expensive. China is Zambia’s biggest creditor, accounting for almost 75% of bilateral borrowings, and is co-chairing a committee negotiating a debt restructuring after the country became Africa’s first pandemic-era sovereign defaulter in 2020.

Source: News 24 October 09, 2022 08:16 UTC