China has over the years become the world's largest public lender, especially to developing countries, particularly in Africa.

Chinese loans to countries on the continent soared to a seven-year high in 2023. Angola, Ethiopia, Egypt, Nigeria and Kenya lead the pack, according to the Chinese Loans to Africa Database compiled by researchers at Boston University's Global Development Policy Centre.

However, the data shows that loans were well down compared to 2016, when they totaled almost $30 billion (€27 billion). The loans, researchers said, were also increasingly to local banks, helping to avoid "exposing Chinese creditors to credit risks associated with those countries".

Analysts say an economic slowdown in China has made Beijing increasingly reluctant to shell out big sums.

The new independent study comes as Beijing hosts African leaders for the Forum on China-Africa Cooperation (FOCAC), which takes place every three years. FOCAC has been a major vehicle for delivering loans since 2006 — some of which have become significant burdens for their African recipients.

According to Alex Vines from Chatham House, a London-based think tank, the emphasis of Chinese loans has shifted to more targeted lending and foreign direct investment, or FDI.

Chinese lenders have become more risk-averse seeking bankable projects, he told DW.

"Economic woes in China have refocused China to be a lot more selective with its investments. We have also seen a shift from State Owned........

© Deutsche Welle