By Prof Sheriff Ghali Ibrahim
The enviable position of China in contemporary international economic system has emerged formidable, unstoppable and incrementally expanding in all sectors and ramifications. This might be seen as a carefully crafted rejoinder or a great response against an article titled “China has transitioned from a major financier to a net debt collector in Africa,” which came as a report by ONE Data for the Development Finance Observatory, released in january, 2026.
The report provided that “China has transitioned from a major financier to a net debt collector in Africa, marking a $52.5 billion, decade-long swing in financial flows…Repayments now exceed new funding, with the continent shifting from a $30.4 billion net inflow (2010–2014) to a $22.1 billion net outflow to China (2020–2024).” It is pertinet to note that giving back to sender in a positive way is not a crime and the lender had made sacrifices in aiding the recipient nations in a period of infrastructure distress, modernization deficit and lack of energy and power. The recipient (Africa) is being grateful and not complaining.
The report has claimed that, reversal in flows occured between 2020 and 2024, at least 20 African nations recorded net outflows to China, totaling $33.8 billion in repayments. It provided a concept of “small is beautiful” approach, that China has moved away from massive infrastructure loans toward smaller, more targeted, and commercially viable projects. This is to the advantage of African countries to slow down as well to asess and recalculate the functions of the existing infrastructure already put in place and the benefits it accrues to the continent. For Africa to allow perpetual inflow of loans does not make a sense, but wise enough to reflect and evaluate the weight of the existing arrangements and try not to renege its veritable pledge to payback the loan. Africa and China have good understanding and they mutually synergise in development cooperation.
The report also asserts that there are Drivers of Change such as Increased risk aversion regarding repayment capacity in African nations, combined with economic shifts in China, caused lending to collapse from over $28 billion at its peak to $2.1 billion in 2024. The report suggests that African treasuries are now prioritizing debt service. Traditionally speaking, every harmonious lending system should establish mutual trust and understanding. China is not a colonial power and does not want to see African countries in a debt-distress. Consequently China and African countries understand the situation and prefer to go on an increased risk aversion. China should not be in a position to loss its lendings and Africa should not risk failure to repay what it has collected. Harmonious relationship is built on the above principle in honesty and sincerity between two reliable partners.
It claimed Currency Shift in mitigating risk, where China is increasingly denominating loans in Yuan, with countries like Kenya and Ethiopia converting existing USD debt. All independent countries will choose a path to mitigating risks in an era of global economic uncertainties, unprovoked trade and tariff war, untold economic conspiracies and geopolitical rivalry. If nations are to redesign the Special Drawing Rights (SDR) of the IMF to avert risks, using their national currencies, that does not offend Africa, and China has the prerogative to determine what plays in its economy; to use or not to use its curency and converting debt in which currency.
The report, by implication, is a sheer opposite of what China does in Africa. The conceptual framework of development is utterly hinged on poverty reduction and level of employment of the total laborforce extending to favorable changes in the economy and living standards of the people. Chinese investments in Africa have generated over 1.1 million jobs for local workers over the three-year period leading up to 2024–2025. These jobs are primarily created through infrastructure, manufacturing, and trade projects.
China wishes to create more jobs for Africa as announced during the 2024 FOCAC summit. It pledged to create at least 1 million more jobs over the next three years (through 2027). As China continues to invest in Africa, reports indicate that a $200 million investment could generate 350,000 jobs in specific countries like Nigeria. China is indeed a development partner from the records of history and concurrent contributions to Africa’s growth and development. For example, China has executed numerous high-value capital projects across Africa under the Belt and Road Initiative (BRI), focusing on railways, ports, energy, and infrastructure, with over 10,000 km of railway and 100,000 km of roads.
In conclusion, China and Africa are more focused on mutual benefits, and strengthening ties to building a China-Africa Community with a shared future. There is no issue of debt-trap in China-Africa relations, but development cooperation and win-win partnership. One major indicator is the elimination of trade barriers or zero-tariff policy China recently announced for African exports to China. This suffices the comprehension of the sincere and honest intention of the two partners in mutual assistance and derivational benefits in their mutual relation.
Prof Ghali is the provost, ICPC’S Anti-Corruption Academy of Nigeria and Head of Contemporary China-Afria Research in Nigeria
