Beijing, Jan. 26, 2026 (Lusa) - Angola was the main recipient of Chinese loans to Africa in 2024, absorbing US$1.45 billion (€1.22 billion) in a year in which Chinese financing to the continent fell by 50%, a study has revealed.
The data, released this week in a study by the Boston University Global Development Policy Centre research unit, reveals a reduction of almost 50% in Chinese financing to the continent compared to 2023 and confirms the trend of concentration in a few countries, with Luanda leading the way.
The overall decline is part of a strategic reorientation by Beijing, which is moving away from large loans to governments and favouring smaller-scale projects and strategic sectors.
In the case of Angola, the funds in 2024 were earmarked for an electricity transmission line (€641 million) and an infrastructure project near Luanda covering real estate, roads and a port (€582 million).
Since the year 2000, Angola has received more than US$49 billion (€41 billion) in Chinese loans, representing more than a quarter of the continent's total.
Alongside the reduction in volume, there has been a notable transition from the dollar to the yuan in financing. In Kenya, for example, all infrastructure loans in 2024 were denominated in the Chinese currency, with the outstanding debt on the railway line built in the country by Chinese contractors being converted to yuan, a move that is expected to reduce annual debt servicing costs by around US$215 million (€181 million).
"What we are seeing is not a withdrawal, but a calibration," said Mengdi Yue, a researcher at the centre, stressing that the change reflects "lessons learned about debt sustainability and risk management".
Apart from Angola, only five other countries - Ethiopia, Kenya, Zambia, Nigeria and Egypt - received Chinese financing in 2024. In total, only six projects were financed across the continent, none of them exceeding the US$1 billion mark (€843 million).
The study warns, however, of the lack of investment in green energy. "We are curious to see whether sovereign loans, together with trade and direct investment, still support the green transition in Africa," said Mengdi Yue.
The researchers suggest that future support could shift from direct financing to areas such as pre-feasibility studies in order to foster the clean energy ecosystem and attract private investment.
"As the era of US$1 billion projects comes to an end, China's new financial instruments may define a more selective phase of its engagement with Africa," the report predicted.
JPI/AYLS // AYLS
Lusa
