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The “debt-trap” narrative around Chinese loans shows Africa’s poor economic diplomacy

The “debt-trap” narrative around Chinese loans shows Africa’s poor economic diplomacy

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Because Asia

Also little alterations in Asia have international results.

Hugging the shores of this Indian Ocean, Kenya’s Mombasa slot is just one of the biggest and busiest harbors in East Africa.

Nearly 1,800 vessels docked in the slot in 2017 alone, with cargo worth over 30 million tons processed—much of it going to neighboring or landlocked countries Uganda that is including, Burundi, and DR Congo. Since its opening into the mid-1890s, the seaport is promoting to be described as a rising local hub and a vital cog in Kenya’s growing infrastructural development.

In December, reports surfaced the port that is prized utilized as security for the $3.2 billion loan that has been utilized to make the 470-kilometer (292 kilometers) train line between your seaside city therefore the money Nairobi. In a leaked report from the auditor general’s workplace, Kenya had been believed to risk losing its slot if it defaulted from the loan, with all the Exim Bank of Asia taking within the port authority’s “escrow account” to regain profits. Further reports have also noted it goes beyond just one single asset that’s been set up as security and that “any state” control ended up being up for grabs in case of a non-payment. Continue reading The “debt-trap” narrative around Chinese loans shows Africa’s poor economic diplomacy