Many African countries are living on the edge of a debt crisis.
Public debt is currently at 60% of Sub-Saharan Africa's GDP, and 19 out of 35 poorest countries are at a high risk of debt default. Without significant support, many of them may be unable to meet their debt obligations soon.
Key takeaways
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Several African countries are at risk of default; hence, China's interest in negotiating debt forgiveness is exciting, given its role as the largest lender to Africa.
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China's debt forgiveness will be critical to dictating how debt forgiveness will be shaped in the future.
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The Paris club is a good model for mass debt forgiveness, given its role in debt restructuring and forgiveness in the late 1990s and 2000s.
