This study applied some datasets extracted from various sources to explore is Chinese over-sea financing in SSA a trap or an opportunity for the regional economic growth of the nations in that region. The study discussed this question by exploring the external debt stocks components of SSA and analysing the major debt creditors in SSA from 2008 to 2018. The study found that China is not the biggest debtor in SSA and Chinese loans in SSA are mainly allocated in infrastructure. What is more, Chinese oversea financing insists the mutual principle without a condition attached, which also comes with longer maturity and competitive rate. The research concludes that loans from China to SSA is an opportunity for the regional nations to spur their economic growth, since such loans complement what those countries’ economic development is thirsty for.

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Nicholas, Howard
Economics of Development (ECD)
International Institute of Social Studies

Liang, Jiaxin. (2020, December 18). A trap or a Way: a study on the Loans from China to sub-Saharan Africa. Economics of Development (ECD). Retrieved from