<div id="readability-page-1"><div><div><div>Key points:<ul><li>Six African projects funded in 2024, including in Kenya and Egypt</li><li>Yuan loans replace dollar in China's Africa strategy shift</li><li>BU data shows shift to cautious lending, strategic partnerships</li></ul></div>By Colleen Goko Chinese lending to Africa nearly halved to $2.1 billion in 2024, the first annual decline since the COVID-19 pandemic, as the country shifts to selective, strategic projects, according to data released on Wednesday by Boston University.The lending, which is less than a tenth of the $28.8 billion peak in 2016, reflects China's move away from large infrastructure projects such as railways and roads and toward smaller, commercially viable projects, according to Boston University's Global Development Policy Center. &#34;As the era of billion-dollar projects winds down, China's evolving financial instruments may define a new, more selective phase of engagement,&#34; the report said, noting that Chinese lending had consistently exceeded $10 billion annually between 2012 and 2018. <figure><figcaption>Thomson ReutersValue of Chinese loan commitments to Africa, 2000–2024 in billions of USD</figcaption></figure>Beijing found itself taking losses on some loans after the economic stress of the pandemic pushed Zambia, Ghana and Ethiopia into default. The university's Chinese Loans to Africa Database, which tracks lending to the continent going back to 2000, found that China has increasingly pivoted away from dollar-denominated megaprojects characteristic of the early Belt and Road Initiative and toward targeted, smaller-scale financing denominated in yuan. &#34;China increasingly employs RMB-denominated loans, small and medium-sized enterprise (SME) on-lending via domestic banks in African countries, and (foreign direct investment),&#34; the report said, pointing to a shift to FDI rather than traditional development loans.In 2024, the most recent year for which data is available, all Chinese infrastructure loans to Kenya were yuan-denominated, the research showed. Kenya also converted $3.5 billion worth of loans from Beijing to yuan in October. Ethiopia is also considering the shift, while the China Development Bank and the Development Bank of Southern Africa signed a deal last year for the first yuan-denominated financing cooperation. Financing for projects exceeding $1 billion also declined noticeably in favor of funds channeled via regional African banks and directed toward projects perceived as commercially viable. <figure><figcaption>Thomson ReutersChinese loan commitment to individual countries, 2000-2024</figcaption></figure>In 2024, China funded just six projects across the continent - two in Angola, and one each in Kenya, Egypt, the Democratic Republic of Congo, and Senegal.Angola, which secured $1.45 billion for power grid and road upgrades, emerged as the top recipient, reflecting Beijing's focus on long-standing partnerships and strategic projects. &#34;Taken together, the data point to a pattern characterized by more conservative direct lending, coupled with market-based financial tools that reduce costs, mitigate debt risk, and support sustainable growth objectives,&#34; the Boston University Global Development Policy Center concluded.</div></div></div>

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Chinese lending to Africa dropped to $2.1 billion in 2024, marking a significant decline as the country shifts its strategy from large infrastructure projects to smaller, commercially viable initiatives. This change is reflected in the increasing use of yuan-denominated loans, with all infrastructure loans to Kenya in 2024 being in yuan. The focus has shifted towards strategic partnerships and targeted financing, with only six projects funded across the continent, highlighting a more cautious approach to lending.

- In 2024, China's loans to Africa decreased to $2.1 billion, marking a notable shift towards selective, strategic projects, particularly in Kenya and Egypt.  
- The shift includes a transition from dollar-denominated loans to those in RMB, with China focusing on smaller, commercially viable projects rather than large-scale infrastructure.  
- The report highlights that China funded only six projects across Africa, with significant emphasis on maintaining long-term relationships, especially in Angola, reflecting a more cautious lending approach.

China's Africa lending nearly halved in 2024, shifts to yuan