The inaugural report by the ONE Data initiative found that many low- and middle-income countries — particularly in Africa — are now transferring more funds to China in debt payments than they receive in fresh financing from the world's second-largest economy. The swing has coincided with a surge in net financing from multilateral institutions, which have become the main source of development finance once debt-service outflows are taken into account. ADVERTISEMENTMultilateral lenders increased net financing by 124% over the past decade and now provide 56% of net flows, equivalent to $379 billion between 2020 and 2024, the analysis found. Once 2025 data becomes available, it is likely to show a large drop in Official Development Assistance flows, said McNair. The report also highlighted a broader decline in bilateral finance flows and private external debt - also trends likely to be exacerbated by aid cuts from 2025 onwards.

Source: The Telegraph January 27, 2026 07:22 UTC