• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

West criticises China over its debt policy in ‘new scramble for Africa’

samrack by samrack
September 10, 2018
in Africa, Diaspora, Kenya, Kenya Diaspora News, News, U.S Diaspora
A A
0
West criticises China over its debt policy in ‘new scramble for Africa’
Share this
FacebookTwitterPinterestEmailWhatsAppLinkedIn
China is now Kenya’s largest bilateral creditor, accounting for 72 per cent of all foreign loans. FILE PHOTO | NMG 

West criticises China over its debt policy in ‘new scramble for Africa’

A war of words is emerging between China and the West over who has the best interests of Africa at heart when it comes to vitally needed investment.

With political analysts talking about a ‘new scramble for African resources’ following the high level meeting in China attended by 54 African states last week, questions have been raised as to who will really benefit from the increased interest.

The event was preceded by UK Prime Minister Theresa May’s plan for £8 billion worth of Britain’s investment in the continent much of it in the technological sector during her visit.

Western critics have hit out at China’s plan for $60 billion worth of loans to Africa saying there is a real concern that it could create a new debt crisis.

Beijing responded by saying that, unlike the West, its loans come with no strings attached and go to where investment is vitally needed. China is now Kenya’s largest bilateral creditor, accounting for 72 per cent of all foreign loans.

Kenya is also one of the five most indebted nations in terms of money owed to foreign creditors such as IMF and countries like China — a total of $22 .2 billion — along with South Africa on $143 billion, Angola on $37.7 billion, Ethiopia on $22.5 Billion and Ghana on $21.2 Billion.

Related Content

  • Treasury takes new eight-year loan to pay Sh77bn debt -VIDEO
  • China’s Sh487bn debt load tops list of foreign lenders
  • Kenyan firms foreign debt now at Sh587bn

Following the high level meeting between President Xi of China and 54 African nations, Beijing insists that its new $60 billion package of loans and aid will not create a new debt crisis for the continent as it will pay for vitally needed infrastructure, investment that will enable the continent to grow more rapidly.

Chinese involvement in Africa has increased dramatically over the past 20 years, with trade increasing more than 20-fold to US $220 billion since 2000. In contrast, the value of UK trade with its three largest trading partners — which include Kenya — was only £13 billion last year.

Now, international experts are mulling over the new Chinese proposals, which some fear will create a new debt trap for many African countries.

While Chinese officials say their support for the continent does not come with strings attached, it is noteworthy that most construction work is carried out by Chinese companies and workers.

Beijing is also in active pursuit of new oil and raw materials and mining concessions for its manufacturing sector and Chinese aid will only go to countries that recognise it as the legitimate and only voice of the Chinese people.

William Gumede, Professor of Public Management at the University of the Witwatersrand told Deutsche Welle: “African debt to China is not yet as high as its debt to industrialised countries. But over time it is going to be equal to or more than, that owed to industrialised countries.”

The fear is that many African countries will become stuck in a debt trap, undermining economic development, just 13 years after the Multilateral Debt Relief Initiative, which cancelled debt for countries that met economic-management and poverty-reduction criteria.

Kenya owes more to China than it does to Western lenders, the traditional source of loans to Africa. As Beijing throws open its credit line to Africa, analysts are warning of the risk of a double-debt stranglehold.

Angola, Ethiopia, Sudan, Kenya and the Democratic Republic of Congo respectively, were the top beneficiaries of these loans. At present Chinese direct foreign direct investment in Africa of around $210 billion still outweighs its loans. But these loans are complex and difficult to quantify.

For Kenya, which has been the beneficiary of the $4 billion Nairobi to Mombasa rail line, the problem is that much of its loans are to Chinese banks who expect the loans to be repaid. Since 2000, China has made $136 billion worth of loans to Africa and now does three times more trade on the continent than the United States.

“China’s investment is often in the form of equipment, materials and a skilled workforce,” the Times newspaper said in an editorial. “But when it comes to paying back the debt it wants hard currency. Failure to pay a debt is already leading China to seize strategic assets in lieu.”

Previous Post

MBCI Boston Conference 20th-23rd Sept 2018 Thur 20th to 23rd September 2018

Next Post

MAKINI SCHOOLS SOLD FOR 1 BILLION SHILLINGS TO FOREIGN INVESTORS

Related Posts

Kenya Airways Subsidiary Fahari Aviation To Receive Embraer Eve eVTOL Aircraft From 2026
Business

Kenya Airways Subsidiary Fahari Aviation To Receive Embraer Eve eVTOL Aircraft From 2026

June 22, 2022
Kenyan Nurse Given a Three-story Home in Lebanon, Pennsylvania After Volunteer Work
Diaspora

Kenyan Nurse Given a Three-story Home in Lebanon, Pennsylvania After Volunteer Work

June 22, 2022
Uhuru’s Daughter Ngina Kenyatta Ties the Knot in a Traditional Wedding Ceremony
Diaspora

Uhuru’s Daughter Ngina Kenyatta Ties the Knot in a Traditional Wedding Ceremony

June 22, 2022
Untold Stories of How Thika Road Estates Got Their Names
Business

Untold Stories of How Thika Road Estates Got Their Names

June 22, 2022
President Uhuru Rejects To Assent Into Law ICT Bill, Opting To Send It Back To Parliament For Review
Kenya

President Uhuru Rejects To Assent Into Law ICT Bill, Opting To Send It Back To Parliament For Review

June 22, 2022
Police in Nairobi recovered 22 firearms and 565 rounds of ammunition during an auction mission on Tuesday in Kilimani suburbs, Nairobi county.
Business

Police in Nairobi recovered 22 firearms and 565 rounds of ammunition during an auction mission on Tuesday in Kilimani suburbs, Nairobi county.

June 22, 2022
Next Post
MAKINI SCHOOLS SOLD FOR 1 BILLION SHILLINGS TO FOREIGN INVESTORS

MAKINI SCHOOLS SOLD FOR 1 BILLION SHILLINGS TO FOREIGN INVESTORS

Please login to join discussion
Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply.
ADVERTISEMENT
ADVERTISEMENT

Latest News

Kenya Airways Subsidiary Fahari Aviation To Receive Embraer Eve eVTOL Aircraft From 2026

Kenyan Nurse Given a Three-story Home in Lebanon, Pennsylvania After Volunteer Work

Uhuru’s Daughter Ngina Kenyatta Ties the Knot in a Traditional Wedding Ceremony

Untold Stories of How Thika Road Estates Got Their Names

President Uhuru Rejects To Assent Into Law ICT Bill, Opting To Send It Back To Parliament For Review

Police in Nairobi recovered 22 firearms and 565 rounds of ammunition during an auction mission on Tuesday in Kilimani suburbs, Nairobi county.

George Wajakoya’s Running mate: Who is Justina Wangui Wamae

IEBC set to make corrections to voters’ register

Kenya cannot ban Mitumba without upsetting the US,Just ask Rwanda

Transition/Death Announcement of Francis Kagumba Mwenenia (Father to Pastor Naomi Kagumba (Lowell,MA ) of St Stephen’s Church Dracut,MA

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

Police in Nairobi recovered 22 firearms and 565 rounds of ammunition during an auction mission on Tuesday in Kilimani suburbs, Nairobi county.

Police in Nairobi recovered 22 firearms and 565 rounds of ammunition during an auction mission on Tuesday in Kilimani suburbs, Nairobi county.

by samrack
June 22, 2022
0

Police in Nairobi recovered 22 firearms and 565 rounds of ammunition during an auction mission on Tuesday in Kilimani suburbs,...

George Wajakoya’s Running mate: Who is Justina Wangui Wamae

George Wajakoya’s Running mate: Who is Justina Wangui Wamae

by samrack
June 9, 2022
0

She has risen to prominence, following her selection as a running mate for one of the only four presidential candidates...

  • About Us
  • Archives
  • SWG Registration

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 0.925 seconds. Stats plugin by www.blog.ca