Chinese debt news better management by African leaders — Quartz


The Angolan newspaper Expansão had an intriguing front page cover this week. It declared, “Every Angolan owes $745 to China.” It also listed debt to other countries, but debt to China was more than seven times what’s owed to the next creditor, Israel. By some estimates Angola owes some $25 billion to China. Since resuming ties in 1983, Angola has taken $60 billion from China in loans and investments.

The issue for Angola isn’t just that it’s borrowing a lot from China, it’s also the nature of the debt. As Africa’s second largest oil producer, Angola’s agreement with China is such that it uses oil to pay off the debt rather than selling on the open market and generating cash. This is all well and good when oil is $100. But it’s risky when oil prices fall. It has caused a…

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