Despite debt woes, Africa still sees China as best bet for financing
A Chinese bank clerk shows off 10,000 Japanese Yen notes among the stacks of 100 yuan notes, at a bank in Huaibei, China on May 29, 2012. China’s lower and longer-term rates make it more attractive to African countries for debt refinancing. PHOTO | AFP
A wave of African nations looking to restructure debt with China on the eve of a major Beijing summit provides a reality check for the continent, where most countries still view Chinese lending as the best bet to develop their economies.
China has denied engaging in “debt trap” diplomacy, but President Xi Jinping is likely to use next week’s gathering of African leaders to offer a new round of financing, following a pledge of $60 billion at the last summit three years ago.
