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How Chinese loans help fuel African military spending

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Chinese money is helping to bankroll and equip some African countries with military equipment and infrastructure.

Most Chinese lending on the continent is used to fund civilian infrastructure, but according to Boston University's Global Development Centre, it signed 27 loan deals with eight African countries worth US$3.5 billion between 2000 and 2020 for defence spending.

Most of the money went into buying military aircraft, equipment and training and for building housing units for the military and police.

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Some 60 per cent, or US$2.1 billion, of the total went to Zambia, a country which has also received massive loans from China to build highways, dams and airports. It is the third biggest borrower on the continent behind Ethiopia and Angola.

Other countries to receive military loans include Ghana, which received US$389 million, Cameroon (US$333 million), Tanzania (US$285 million), Zimbabwe (US$257 million), Sudan (US$121 million), Sierra Leone (US$16 million) and Namibia (US$9 million).

According to Boston University's Global Development Centre, lenders included the national policy bank, the Export-Import Bank of China (Eximbank), and Chinese companies such as Aviation Industry Corporation of China (AVIC) and Poly Technologies.

Jyhjong Hwang, the lead researcher for Boston University's Chinese Loans to Africa Data­base, said Zambia was the top recipient of Chinese loans for defence equipment as a result of historical, strategic and domestic interests.

Hwang said that when Rhodesia - which later became Zimbabwe when black majority rule was restored - threatened Zambia with an embargo and invaded Zambian airspace in 1964, requests for Western support were met with a tepid response.

Zambian army soldiers on patrol, the country is the biggest recipient of Chinese military lending. Photo: AFP alt=Zambian army soldiers on patrol, the country is the biggest recipient of Chinese military lending. Photo: AFP>

However, China quickly offered to build a railway linking the landlocked republic with the Tanzanian port of Dar es Salaam.

"This experience created good rapport between the Zambian and the Chinese governments. Moreover, the Zambian leadership was made keenly aware of the importance of a strong air force," Hwang said.

"Chinese aircraft tend to be cheaper to purchase and to maintain, and can sometimes be financed by Chinese loans, making them attractive options when budgets are tight."