Business
China’s Lending to Africa Rebounds in 2023, with Nigeria as a Major Beneficiary
In 2023, Chinese lending to Africa experienced a notable rebound, reaching $4.61 billion, according to a study by Boston University’s Global Development Policy Centre. This marks the first annual increase in Chinese lending to Africa since 2016, signaling a shift in China’s approach to financing on the continent.
Although this figure is substantially lower than the peak lending years of 2012-2018—when China provided over $10 billion annually—the recent increase suggests that China is exploring a more sustainable lending strategy. The study noted that Beijing appears to be seeking a new equilibrium in its financial engagement with Africa.
A significant portion of the 2023 loans, totaling $2.59 billion, was directed towards regional and national financial institutions rather than individual governments. This shift reflects a strategy aimed at mitigating risk by avoiding direct exposure to the debt challenges faced by individual African countries.
Noteworthy loans in 2023 included a nearly $1 billion loan from the China Development Bank to Nigeria for railway development. Egypt’s central bank also received a similar amount. Despite a decline in lending since 2019, China remains a key player in African development, having provided a total of $182.28 billion between 2000 and 2023, primarily for energy, transport, and ICT projects.
The study also highlighted a growing emphasis on renewable energy, with approximately 10% of 2023 loans allocated to solar and hydropower projects. However, the overall direction of China’s financial strategy in Africa remains uncertain, as loans were also extended to countries with significant debt challenges, such as Nigeria and Angola.
The Global Development Policy Centre concluded that the future quality and sustainability of China’s partnerships in Africa will need to be observed as the new lending strategies unfold.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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