Tuesday, August 4, 2020
Home As We Heard African Nations Turn To China

African Nations Turn To China

Japan charges a measly 0.04% interest on the loans it makes to foreign countries.  China charges 4%.  It reinforces the view in a number of countries that China’s financial assistance is actually a “debt trap.”  Nevertheless, the world is hungry for infrastructure and the demand in Africa for funding for building infrastructure is growing.  Many African countries are expected to turn to China for help because its terms and conditions are seen as less onerous that from other foreign lenders.