U) PRC Lending in Africa: Impacts in a Time of Global Shocks

PRC lending has also declined across the continent, in both the number of loans and the value of each loan, forcing African | www.cna.org 1 PRC Lending in Africa IMPACTS IN A TIME OF GLOBAL SHOCKS leaders to reevaluate the decades-long model of goes to PRC SOEs and firms, which undercut free-flowing PRC loans to their countries. [...] The presence of foreign militaries in the country and its proximity to In 2017, the IMF warned that a key maritime chokepoint mean that the US and its allies have been particularly sensitive to the PRC’s the Djiboutian government’s growing investment and influence in the nation. [...] It is not clearly stated to the project’s cancellation.164 in what way the loan and transfer were done.”158 DOMINANCE IN ETHIOPIA’S CONSTRUCTION CANCELING PROJECTS AND INDUSTRY MOUNTING COSTS Because of PRC contractors’ overall dominance of According to the Ethiopian Reporter, the delay Ethiopia’s construction sector, the canceling of PRC in debt restructuring is one of the reasons that contracts. [...] At the connects Nairobi with the port town Mombasa time, Kenya’s debt-to- on the Kenyan coast and the town of Naivasha in GDP ratio had increased the Great Rift Valley.182 The goal of the project was from 50.2 percent in 2015 to connect the Kenyan port with the landlocked to 61.7 percent in 2020.178 countries of Uganda, Sudan, and Rwanda via the According to the UN, by 2022, debt servicing SGR. [...] Vines, Butler, and Jie, The Response to Debt Distress to Debt Distress in Africa and the Role of China, The in Africa and the Role of China.