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Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

organised by ODI

China in Africa: lending, policy space and governance

Author: Martine Dahle Huse and Stephen L. Muyakwa

This report aims to raise awareness on the issue of debt and new lenders in Africa, focusing particularly on China. It briefly introduce the role of China in Africa, highlighting some of the differences between China and the traditional lenders. The report looks at China’s lending modalities to African countries, its impact on governance and the issue of debt sustainability, presenting a case study on the relationship of Zambia and China.
The research found that China’s aid modalities are characterised by lack of conditionality but also lack of transparency and accountability. It also alerts about the potential nega¬tive impact on debt sustainability and the possible contribution to debt crisis in countries where governance is week.
The report stress the urgent need to establish internationally recognised legal standards for responsible lending. Additionally, it set down recommendations with a particular focus on the Zambia case.

To read the full report, click here

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