This archive report was first published on 18 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, where he stated that China will cancel the debt of relevant African countries in the form of interest-free government loans that are due to mature by the end of 2020.
Furthermore, Mr. Xi indicated that China will work with other international lenders to cushion African countries most affected by the novel coronavirus, enabling them to ride out the crisis.
