The conflict in Sudan has dealt a fresh blow to China’s strategy of financial engagement with Africa, putting at further risk loans from Beijing worth at least $5bn.Sudan has been a significant recipient of Chinese financing on the African continent, where Beijing ranks as the largest bilateral lender, according to figures from the AidData lab at William and Mary college in the US.

The power struggle between two rival generals that erupted last month has brought war to the capital Khartoum and displaced hundreds of thousands of Sudanese people. It has also been a setback for China’s strategic goals in the Horn of Africa, where Beijing has sought to bolster its influence by funding infrastructure.

Sudan’s outstanding debts to China stood at $5.12bn in early 2022, according to Sudanese central bank documents. But analysts said this did not include oil prepayment facilities, which are in effect loans from Chinese entities that are supposed to be repaid with shipments of oil.