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 some $145 billion by the continent, including $5 billion by Kenya. However, just under 20 per cent of these loans are interest-free, indicating the cancellation may be insufficient.
Mr. Xi's announcement came as part of the Forum on China-Africa Cooperation (FOCAC) framework, which aims to strengthen economic ties between China and Africa. The move is seen as a significant gesture of goodwill from China to help African countries ride out the crisis.
South African President Cyril Ramaphosa, Kenya's Uhuru Kenyatta, Senegal's Macky Sall, and Ethiopian Prime Minister Abiy Ahmed were among the leaders who received the news. They have been vocal in seeking easier terms on debt amid the pandemic.
