China Announces Debt Cancellation at African Summit

Written by Jubilee USA Network   

China's President Xi Jingping announced a $60 billion debt relief and financing package to African countries during a China-Africa summit. President Jingping said China would cancel outstanding debt from African countries due this year but did not specify an amount. The package, announced during the Forum on China-Africa Cooperation in Johannesburg, South Africa, includes grants, zero-interest loans and other concessional financing.

"Several African countries urgently need debt relief and other financing for development," noted Eric LeCompte, executive director of the religious development group Jubilee USA. "We continue to be concerned with what China asks for in exchange for debt relief and the general transparency in debt negotiations."

In 2009, China cancelled debt for 32 African countries. African debt levels rose in the past five years from 34% of the size of the continent's total economy to 44%. Ghana's debt rose from just over 40% of its economy in 2011 to nearly 75% in 2015.

"Africa's rising debt levels are troubling," stated LeCompte. "If we want growth and development in Africa, debts need to be sustainable."

Jubilee USA Network is an alliance of more than 75 US organizations and 400 faith communities working with 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org