New research raises questions about the cost of Chinese finance as African governments seek alternatives to expensive borrowing
Chinese lending to African countries has become significantly more expensive, with the average interest rate rising from 2.5 per cent in 2020 to 5.7 per cent in 2024, according to research highlighted by ODI Global.
The findings challenge the long-standing perception that Chinese financing is necessarily a cheaper alternative to borrowing from Western governments, multilateral development banks and international capital markets.
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