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.
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