this post was submitted on 12 Jul 2023
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[–] fedfedfedd@lemmy.ml 0 points 1 year ago (7 children)

Im scared for the countries getting caught in Chinas debt trap. With maintenance contracts being forced (for more than 90 years!), billions in outstanding loans in each country there is no way to climb out the hole. Everyone can see these extravaganza projects are not what Africa needs, but what China wants.

[–] yogthos@lemmy.ml -1 points 1 year ago (4 children)
[–] zephyreks@lemmy.ca 0 points 1 year ago* (last edited 1 year ago) (3 children)

African countries are foregoing Western investment because of the number of strings attached. Chinese loans are pretty straightforward: here's some money, here's a (very) competitive interest rate, and here's how the infrastructure will be kept alive even if the country runs out of tax revenue to fund it. Critically, the project's operation isn't hindered by financial mismanagement and can keep delivering economic benefits to the region.

[–] fedfedfedd@lemmy.ml 0 points 1 year ago (1 children)

African countries are foregoing Western investment because of the number of strings attached

What strings?

here’s a (very) competitive interest rate

IMF loans are cheaper. Every person with two braincells will realize corrupt officials will take the chinese loans with higher interest rates because of the bribes. A 90 year maintenance contract is nonsense and you cant defend it.

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