China's loans to African countries hit a five-year high in 2023, with a noticeable shift towards targeted lending, as Chinese lenders become more risk-averse.
The Forum on China-Africa Cooperation (FOCAC) has been pivotal for loan delivery since 2006, yet many loans have become burdensome for African nations.
Economic challenges in China led to a more selective approach in investments, shifting focus from State Owned Enterprises to family firms for better bankable projects.
Beijing's loans are increasingly directed to local banks, minimizing credit risk exposure for Chinese creditors, with a trend towards lending to more creditworthy countries.
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