African nations now send more money to China than they receive in new loans
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China’s role as a leading financier to developing countries has changed over the past decade, with new lending falling sharply while debt repayments continue to rise, according to a new report by the ONE Data initiative. The analysis found that many low- and middle-income countries particularly in Africa — now send more money to China in debt service than they receive in fresh financing.
The shift has coincided with a jump in net financing from multilateral institutions, which the report said have become the main source of development finance globally once debt-service outflows are accounted for. Multilateral lenders increased net financing by 124% over the past decade and provided 56% of net flows — $379 billion between 2020 and 2024 — the report said.
David McNair, executive director at ONE Data, said the outflows reflect that “there’s less lending coming in, but that previous lending from China still needs to be serviced.” For Africa, the report said an inflow of $30 billion in 2015–2019 flipped to an outflow of $22 billion in 2020–2024, the latest period covered by the data.
The report does not include aid cuts that took effect in 2025, and McNair said once 2025 data is available it is likely to show a large drop in Official Development Assistance flows. He described the trend as “a net negative” for African nations facing challenges funding public services and investment, while arguing it could also push greater domestic accountability as governments rely less on external finance.
Separately, research cited in the Reuters report said China’s overseas dealmaking activity rebounded in 2025, with Belt and Road Initiative deals hitting record levels of $213.5 billion, including $128.4 billion in construction contracts and $85.2 billion in investments, and Africa emerging as the largest recipient. The Belt and Road Initiative was launched in 2013 by President Xi Jinping and has expanded beyond its initial focus to include regions such as Africa, Oceania and Latin America.
