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AFRICA CHINA

Macron and Biden want to force China to play ball on African debt

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“Debt diplomacy”

AFRICA

Debt diplomacy

Because the fight to contain it has involved the use of public funds, the Covid-19 pandemic has led to an explosion of debt throughout Africa, forcing countries to seek a moratorium from the G20 and bring in consultants to help them negotiate with their sovereign, private sector and institutional creditors. In the West, the growth of African countries' debt has led to fierce competition between private and public sector creditors to obtain repayment of their debts. China is also involved but has shown little inclination so far to reschedule African countries' debts. [...]

On December 30, 2020, French President Emmanuel Macron took part in a videoconference bringing together his Chinese counterpart Xi Jinping and European representatives. © Sébastien Nogier/ Pool/EFE/Newscom/MaxPPP

Following the explosion in African countries' public debt caused by Covid, the European Union and the United States want to force China to take part in the collective rescheduling process organised by the G20 and the Paris Club. So far, however, China has given preference to bilateral negotiations with its African debtors, upsetting other creditor countries and causing confusion within the international financial institutions. [...] (956 words)

Published on 19/01/2021 at 05:00 GMT Reading time 4 minutes

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Debt diplomacy

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Set up email notifications for these topics

Xi Jinping's new ambitions for China-Africa trade take shape

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Government looks to Caixa Geral de Depositos to restructure its debt

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