China is scaling back the value of loans it hands out to African countries in what the Financial Times suggests is evidence of a growing wariness at the level of debt being taken on by countries on the continent. Beijing pledged to lend USD 40 bn in investment, credit lines, trade finance and special drawing rights to African nations over the next three years, Chinese president Xi Jinping announced at this week’s Forum on China–Africa Cooperation. This is a third less than the USD 60 bn China pledged at the previous two summits.

The news comes as China has denied it has plans to take over Uganda’s only international airport if the company defaults on a USD 200 mn facility it took from Beijing to expand the facility. “A parliamentary probe last month concluded that China had imposed onerous conditions on the loan, including potential forfeiture of the airport in case of default, sparking public outrage,” Reuters reports.

Afghanistan will likely suffer one of the worst economic meltdowns in history within a year following the Taliban’s takeover, according to new data published by the UNDP, the FT reported. The UN has forecast Afghanistan’s GDP to shrink 20%, an abrupt drop they have never seen before that could result in nine out of 10 Afghans falling beneath the poverty line. For comparison: It took five years of civil war in Syria to achieve a similar economic contraction.

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 1.05 bn (26.9% below the 90-day average). Foreign investors were net buyers. The index is up 5.3% YTD.

In the green: Qalaa Holdings (+3.7%), Rameda (+3.5%) and Egyptian Resorts Company (+3.3%).

In the red: CIRA (-2.4%), Fawry (-2.2%) and EFG Hermes (-1.3%).