China urges African debt repayment in yuan

China is encouraging African countries to repay Chinese loans in yuan instead of US dollars, as part of a broader strategy to internationalize its currency and reduce global reliance on the dollar. Kenya's decision to restructure part of its Chinese debt from dollars to yuan is seen as an early signal of a wider financial reconfiguration. Over the past two decades, China has become a major lender to Africa, with an estimated $150-180 billion in lending commitments. Major recipients include Angola, Ethiopia, Kenya, Zambia, Egypt, Cameroon, South Africa, and Nigeria. Critics note that infrastructure projects financed by Chinese loans do not always generate immediate revenue, and currency depreciation can increase debt pressure. The move could gradually weaken demand for the US dollar in international transactions.