Analyst: Zambia Owes More Than Double the $12 Billion to China and Other External Creditors

Zambia owes $27 billion to external creditors rather than the $12 billion figure that is widely circulated in the media, according to Brad Setser’s reading of World Bank data on external debt. Setser, a senior fellow at the Council on Foreign Relations in New York, explained in a six-part Twitter thread that explained why Lusaka owes far more than is reported.

Key Highlights From Brad Setser’s Analysis on Chinese Debt in Africa

  • TRANSPARENCY: “The lack of accurate data is a function of Chinese policy not to be transparent: in almost every country, the same three Chinese institutions (China Exim, CDB and ICBC) account for the bulk of exposure (the Commerce Dept has some zero rate concessional loans).”
  • DSSI MISTAKE: “The World Bank and the G-20 erred in focusing on public and publicly guaranteed debt — when a lot of China’s project finance has been kept off the public balance sheet.”

Read the full analysis on Brad Setser’s Twitter page.

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The post Analyst: Zambia Owes More Than Double the $12 Billion to China and Other External Creditors appeared first on The China Africa Project.



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