Of Africa’s Total Debt, Only About 8% Was Owed to Chinese Entities, With Most Owed to the West

The narrative surrounding Africa’s debt crisis often highlights the role of Chinese lending, particularly the claim that China is ensnaring African nations in a “debt trap.” However, this perspective frequently overlooks the historical context and the significant role of Western financial institutions and private creditors in perpetuating Africa’s debt challenges.

The Debt Landscape

In 2019, Africa’s total debt was approximately $964 billion, with about $78 billion (or 8%) owed to Chinese entities. While this figure is frequently cited in discussions about “debt trap diplomacy,” it is crucial to recognize that the majority of Africa’s debt is held by Western creditors. By 2020, African nations owed around $135 billion to private bondholders, far exceeding the debt owed to China. This reality raises questions about the focus on Chinese lending as the primary culprit in Africa’s debt crisis.