African nations are now sending more money to China in debt payments than they receive in new loans, according to a report by ONE Data. The shift is attributed to a decline in Chinese lending to poorer countries, while debt repayments continue to rise. Africa has seen a $52 billion swing in five-year net finance flows, with the continent paying out $22 billion more than it received in 2020-24 .
The trend is considered “a net negative” for African nations, as governments face difficulties funding public services and investment. However, it may also promote domestic accountability as governments rely less on external financing. Multilateral institutions have stepped in, increasing net financing by 124% over the past decade and providing 56% of net flows, equivalent to $379 billion between 2020 and 2024.
The report highlights a broader decline in bilateral finance flows and private external debt, exacerbated by aid cuts from 2025 onwards. The closure of the U.S. Agency for International Development and reduced allocations from developed countries have already impacted developing economies, especially in Africa .
