China loans to Africa bring growth and debt risks
The implications of these lending practices amplify the credit risks facing African states, says Moody’s.
Unless the investments financed by China generates substantial economic gains boosting debt servicing capacity, the loans will have significant implications for growth, debt sustainability, and affordability.
With an already mounting debt problem and low foreign exchange reserves, some of these African countries might be exposed to fiscal and external vulnerabilities.
Quartz Africa