China’s strategic realignment of financing in Africa

In 2024, China’s drastic withdrawal from lending for African infrastructure projects marked a profound shift: a move away from state-guaranteed mega-loans toward selective investments in lower-risk, economically viable projects. For Africa, this means not only a growing financing gap, but also a wake-up call for greater fiscal discipline and stronger ownership.

The current issue of "Development in brief" provides an overview of these historical trends and the resulting new reality of financing in Africa. What opportunities and challenges arise from this shift — and how can Western partners effectively step in without creating new debt traps?

China’s strategic realignment of financing in Africa (PDF, 203 KB, accessible)