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A report from Boston University has revealed that more than two dozen African countries have benefited from a substantial $52.4 billion in loans for energy projects provided by China's two main development finance institutions.
These loans accounted for 23% of $225 billion provided by the China Development Bank and the Export-Import Bank of China to 65 foreign governments globally from 2000 to 2022
The report, China’s Global Energy Finance Database, highlights that thirteen African nations have received loans of $1 billion or more for energy-related initiatives. Among these, Angola emerges as the largest recipient of Chinese financial aid for energy projects, securing a total of 10 separate loans since 2002. The most significant tranche, amounting to $15.1 billion, was disbursed in 2016.
Cumulatively, Angola has received a total of $24.4 billion in loans since 2002, making it the highest beneficiary on the continent.
Angola directed $10 billion from this substantial loan to recapitalize its state-run oil firm, Sonangol, which accounted for about five projects. The remaining funds were allocated to crucial hydroelectric projects in major cities such as Luanda and Cabinda, enhancing the country's energy infrastructure significantly. Under the unspecified projects category, there are 25 individual projects, all in the energy sector.
While Angola has not received further loans for energy projects from China in recent years, the financial contributions have played a significant role in supporting the nation's energy sector and promoting infrastructure development.
Other countries with significant figures are Zambia with $2.2 billion, South Africa with $4.5 billion, Zimbabwe with $1.3 billion, Sudan with $1.9 billion, Ethiopia with $1.8 billion, Ghana with $1.6 billion, Cote d'Ivoire with $1.6 billion, and Guinea with $1.5 billion.
The report emphasises the strategic presence of China's investment in enhancing the energy capabilities of African countries and contributing to the overall economic growth and sustainability of the region.
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