Africa debt to China

have you ever borrowed money say for school or a shipping port but struggle to pay it back? then lender was like ok no problem just give me the rights to everything for the next 99 years!!. ask Sri Lanka a small island nation off the coast of India in 2010 they got a small 1.5 billion dollar for China to build a shipping port in the town.due to low shipping traffic which meant that no much cash flow, Sri Lanka missed few payments and next thing you know they had to sign waiting for entire port to China with a 99 year lease. looks it’s not that easy to learn from others mistakes, in Africa dozens of countries have taken out Chinese loans. in last September China pledge to invest another 60 billion dollars in Africa.

Sudan was the first country in sub-Saharan Africa to recognize the people’s republic of China that was back in 1959. the diplomat calls it china’s original foothold. sudan is a country that holds the record for the longest-running civil war in Africa resulting in the deaths of 2 million people and the breakup of the country into Sudan and South Sudan. sudan got the largest share of that 60 billion dollars that China pledges to Africa back in September. chinese investment in Sudan has given China control of around 75% of the country’s oil industry under the supervision of the China national petroleum corporation, although some of the facilities are fixer-uppers some of that Chinese money was used upgrade the Khartoum refinery and double production to 100000 barrels a day, which is important because the vast majority of that oil goes to China and there plenty of other resources to tagging Sudan to like gold and loyalty. Sudan debt to China is now estimated to 6.4 billion dollars and with China to pledge to provide more financing that debt could balloon bigtime. according to the IMF report, Sudan’s external debt is assessed to be unsustainable but that’s not even so bad compared to several other countries.

the republic of the congo don’t confuse with the democratic republic of the congo it’s a larger and less democratic neighbor. the republic of the congo has a debt of 7.3 billion dollars. according to a paper by the China-Africa research initiative the republic of the congo is one of three African countries alongside Zambia and Djibouti. where Chinese loans make up the most significant contributor to the high risk of debt distress.some of the project have eyebrows, like Chinese companies built the new Congolese parliament building for free…. the Chinese regime doesn’t want to take over, it’s more likely they built the parliament building so they could bug the whole thing as they did with the African Union building. according to the IMF Congo is officially in debt too stressed and they’ve been shopping around for a bailout but its not going to be easy when the IMF did some due diligence they found the republic of the congo maybe hiding part of its debt, the country claimed its debt to GDP ratio is 77% But the IMF calculated data ratio to be 117% they accuse the government of lying and called for an anti-corruption watchdog to be set up before they agree to release any funds. congo is a major oil producer so maybe China will agree to take all as collateral and then led them some more money

Nairobi-Mombasa railway is Kenya’s biggest infrastructure project since the country became independent in 1964. kenya’s president loves his trains so much that he recently secured another 3.6 billion dollar loan from China to extend the railway line by 155 miles. the opposition says the project is too expensive it won’t generate enough revenue and is a ticking financial time bar. because after it 10-year grace period Kenya has to start paying back the loan

Angola is the African country with the most debt to China, 25 billion dollars to rack up that kind of debt it took more than a few one-off projects. Chinese companies are building entire cities on the outskirts of the capital.” yes definitely had it’s the right thing to do” but China international fund limited has shady links to the Chinese regime and the history of investing in unstable African dictatorships or they will securing rights to extract minerals and other resources, remember Chinese debt will finance what will become but the biggest airport in a city you’ve never heard of called “Luanda”.

Leave a Reply

Your email address will not be published. Required fields are marked *