A new report says debt problems are worsening on the African continent, with governments’ external debt payments doubling over the last two years.
The UK-based Jubilee Debt Campaign which conducted the survey says the greater proportion of the loans are from international lenders including the World Bank and IMF – as well as private sector loans, which have higher interest rates.
Researchers estimate that China is owed about 20 percent of Africa’s external government debt, a lower number than some might have expected.
There has been growing concern that China has been causing new debt traps in Africa, as governments contract out huge loans to build infrastructure. The UK-based charity has called for new rules to ensure there is greater transparency for all loans.
