Africa Resumes Bond Sales as China Steps Back
By Kasim Isa Muhammad
Kanempress News
3rd March 2025
Sub-Saharan African nations are returning to the bond market after a hiatus, raising over $10 billion in 2024. Many countries, once shut out, are now tapping into foreign currency-denominated debt offerings.
In a shift, China’s lending to Africa has drastically fallen from nearly $30 billion in 2016 to just $4.6 billion in 2023, according to the Global Development Policy Center at Boston University.
South African President Cyril Ramaphosa highlights that the continent’s heavy debt burden is holding back economic growth. He also points to the unfair debt ratings as a reason for higher fundraising costs.
As China retreats, Africa faces a growing “slow-burning” debt crisis, with many of the poorest nations grappling with this evolving challenge. While Africa looks for new financing sources, countries like Tanzania and Burundi are still deepening ties with China, evidenced by a recent deal on a nickel-carrying railway.
As the debt landscape shifts, Africa faces new opportunities and challenges in navigating its financial future.
