In 2020, the Chinese Loans to Africa (CLA) Database, managed by the Boston University Global Development Policy (GDP) Center, recorded 11 new loan commitments worth $1.9 billion from Chinese lenders to African government borrowers. This low amount, not seen since the mid-2000s, is down 77 percent from 2019 volumes, when Chinese lenders signed 32 loan agreements worth $8.2 billion. Such a reduction in Chinese loan commitments to Africa is a continuation of a long-term decrease since 2016 and further exacerbated by the COVID-19 pandemic. The effects of COVID-19 on African economies and a worldwide pullback of Chinese lending capacity may explain such a drastic drop in Chinese lending amounts to Africa in 2020.

Despite low 2020 loan commitment volumes, Chinese lending to Africa has remained significant. The CLA Database estimates Chinese financiers signed 1,188 loan commitments worth $160 billion with African governments and their state-owned enterprises between 2000 and 2020. These loans were provided to a variety of borrowers across different sectors and remain an important source of financing for African government borrowers. Should the declining trend of Chinese loans to Africa continue, other sources of Chinese financing, such as foreign direct investment (FDI), may expand in the region. A rebound in loan commitments will likely occur with structural changes to borrowing practices for African governments and lending standards for Chinese financiers.