Ethiopia is Second African Countries With the Largest Chinese Debt
China’s activities in Africa have raised a lot of eyebrows, and the issue of being trapped into Chinese debt is real and ominous. Here, we look at the top ten African countries with the largest Chinese debt.
Whether the officials and government authorities accept it or not, Chinese dealings in Africa are being viewed in a highly skeptical way. The truth is, the menace of falling into Chinese debt-trap is very real, and it is happening. Africa is slowly being tied to the yoke of Chinese debt. There is no transparency and accountability when it comes to acquiring Chinese loans.
As a result of this, African countries are finding it hard to extricate themselves from the grip of Chinese debt. It means that debt is continuing to pile on and on, unabated, and the repercussions will be dreadful. Some countries are having it worse than others, as will always be the case.
Angola is the most indebted African country to China. It has an estimated debt of over US$25 billion. Shocking, but that’s the reality at hand. Most of Angolan oil is going towards the repayment of Chinese debts, despite Angola being the second largest producer of oil in Africa.
All those Chinese infrastructural development projects in the East African country are coming at a heavy price. Ethiopia has an estimated debt of US$13.5 billion. The debt levels have slowed down some projects due to repayment issues, but there is now a new structure for these debts that makes it a little bit affordable for Ethiopia to repay.