China Turns Net Debt Collector in Africa After $52.5bn Swing
Beijing’s role in Africa’s financial landscape has undergone a dramatic transformation, with new research showing that China has shifted from being the continent’s largest bilateral lender to a net debt collector. Africa went from receiving $30.4 billion in net financial flows from China between 2010 and 2014 to paying out $22.1 billion in net flows over the past five years, marking a $52.5 billion reversal, according to ONE Data for the Development Finance Observatory.
This is even as Nigeria remains China’s largest debtor in Africa, with $5.16 billion of its $6 billion bilateral loan stock, slightly down from $5.3 billion in 2024, underscoring the scale of obligations still owed to Beijing.
The report highlights how Chinese inflows to low- and lower-middle income countries collapsed from $26.5 billion in 2018 to just $5.1 billion in 2024, while debt service outflows rose from $10.6 billion to $17.4 billion in the same period.
Between 2020 and 2024, twenty African countries recorded net outflows to China, amounting to $33.8 billion.
China’s retreat from large-scale “mega loans” that once financed roads, railways, and power projects reflects growing concerns over debt sustainability and repayment capacity. Lending to Africa fell sharply, with Boston University’s Global Development Policy Center reporting that Chinese loans dropped to $2.1 billion in 2024, compared to $28.8 billion in 2016.
As China pulls back, multilateral lenders have stepped in to fill the gap. The World Bank and other institutions more than doubled their funding to developing countries in the five years through 2024 compared with a decade earlier, providing $378.7 billion, accounting for 56 per cent of net financial flows.
This realignment signals Africa’s growing reliance on multilateral finance as China transitions from a dominant funder to a net recipient of debt repayments, reshaping the continent’s development finance landscape.
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