Major African Economies Carry $17.2 Billion Debt Burden to China

Africa’s three largest economies—South Africa, Egypt, and Nigeria—collectively owe China $17.2 billion, according to recent data from the World Bank and Egypt’s central bank. This figure highlights the extensive financial relationship between Beijing and the continent’s primary economic powerhouses, even as these nations grapple with poverty, unemployment, and the rising costs of living.

The distribution of this debt varies significantly across the three countries. Egypt holds the largest portion, with $9.6 billion in debt to China as of June 2025. Nigeria follows with $5.67 billion, while South Africa reports the lowest balance at $1.93 billion. These figures reflect different reporting periods and debt categories, yet they collectively underscore the pressure these governments face to manage repayment obligations while simultaneously funding essential infrastructure projects.

In Nigeria, Chinese financing has been heavily directed toward transport networks and railways intended to improve connectivity and facilitate trade. Despite these investments, the country faces mounting fiscal strain. World Bank estimates suggest that more than 60% of the Nigerian population lived below the national poverty line in 2025. Furthermore, the economy struggles to generate sufficient employment for the 3.5 million individuals entering the labor force annually, complicating the government's efforts to translate infrastructure gains into broader economic prosperity.

Egypt, while managing its $9.6 billion debt to China, maintains a more diversified creditor base that includes significant loans from Saudi Arabia, the United Arab Emirates, and Kuwait. Although the country recorded a 5.1% economic expansion during the 2025/2026 financial year and a decrease in unemployment to 5.8%, it continues to face inflationary pressures that erode household purchasing power. Debt-service payments for Egypt reached $38.7 billion in the 2024/2025 financial year, placing considerable demand on the nation's foreign currency reserves.

South Africa’s approach to financing differs from its peers, as it relies more heavily on private creditors and international financial markets rather than bilateral loans. While China accounts for nearly 47% of South Africa’s $4.13 billion bilateral external debt, the country's total external debt portfolio is substantially larger at $206.34 billion. The nation faces a significant unemployment crisis, with official figures from Statistics South Africa showing a 33.6% unemployment rate in the second quarter of 2026, affecting approximately 8.5 million people.

The challenges faced by these three nations are representative of a broader trend across developing economies. According to the World Bank, external debt for developing countries reached a record $9.4 trillion in 2025. Between 2022 and 2025, these nations paid $436 billion more in debt service than they received in new financing. Haishan Fu, a World Bank official, noted the difficulty of this cycle, stating that while the return of private lending is welcome, countries are often left with fewer resources for long-term development after prioritizing debt repayments.