China’s years of splashing cash on big-ticket infrastructure projects in Africa may be over, analysts say, with Beijing seeking to shield itself from risky, indebted partners on the continent as it grapples with a slowing economy at home.
Beijing for years dished out billions in loans for trains, roads and bridges in Africa that saddled participating governments with debts they often struggled to pay back.
But experts say it is now opting for smaller loans to fund more modest development projects.
“China has adjusted its lending strategy in Africa to take China’s own domestic economic troubles and Africa’s debt problems into account,” Lucas Engel, a data analyst studying Chinese development finance at the Boston University Global Development Policy Center, said.
“This new prudence and risk aversion among Chinese lenders is intended to ensure that China can continue to engage with Africa in a more resilient and sustainable manner,” he told …