AFRICAN GOVERNMENTS OWE THREE TIMES MORE DEBT to Western banks, asset managers and oil traders than to China, and are charged double the interest, according to research released by Debt Justice. Western leaders through the G7 have attributed the failure to make progress on debt restructuring to China, but the data shows that this is mistaken.
Just 12 per cent of African governments’ external debt is owed to Chinese lenders compared to 35 per cent owed to Western private lenders, according to the calculations based on World Bank data.
Furthermore, interest rates on private loans are almost double those on Chinese loans, while the most indebted countries are less likely to have their debt dominated by China.
The figures have been released ahead of the G20 Finance Ministers meeting on 15-16 July in Indonesia. Campaigners are calling on Western countries, particularly the UK and US, to compel private lenders to take part in the G20’s debt relief scheme, the Common Framework. Three African countries have applied for the Common Framework, none have yet had any debt relief.
