This archive report was first published on 17 June 2020.
On June 17, 2020, Chinese President Xi Jinping made a significant announcement to African leaders via video link, pledging to cancel interest-free debt owed by 'relevant' African countries as part of Beijing's move to help the continent during the Covid-19 pandemic.
As the biggest creditor of Africa, China is owed approximately $145 billion by the continent, including $5 billion by Kenya. However, only about 20% of these loans are interest-free, indicating that the cancellation may be insufficient.
Mr. Xi's announcement was made within the framework of the Forum on China-Africa Cooperation (FOCAC), where he stated that China will cancel the debt of relevant African countries in the form of interest-free government loans due to mature by the end of 2020.
Furthermore, Mr. Xi indicated that China will work with other international lenders to provide greater support to African countries hardest hit by the pandemic, including extending the period of debt suspension to help them tide over the current difficulty.
