FinTech Magazine January 2024 | Page 12

BIG PICTURE

China ’ s infrastructure drive makes it ‘ world ’ s biggest debt collector ’

Djibouti City , Djibouti

Passengers wait to board a train bound for Addis Ababa at Nagad Station in Djibouti . The railway line between Ethiopia and its northeastern neighbour is one of numerous major infrastructure projects built as part of China ’ s Belt and Road Initiative . In total , China has contributed approximately US $ 1bn towards infrastructure projects in Djibouti . Now , new research paints a picture of the country as the world ’ s biggest sovereign lender . China lent over US $ 1.3tn to developing countries between 2000 and 2021 , according to a report from AidData . “ Beijing is navigating an unfamiliar and uncomfortable role as the world ’ s largest official debt collector ,” the report ’ s authors say .