President Stops Rogue Chinese Investors

President Stops Rogue Chinese Investors

Tanzanian President Dr John Pombe Magufuli, has foiled the Chinese “debt trap” strategy in Tanzania, as he genuinely wages war on corruption.

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Tanzanian President Dr John Pombe Magufuli, has foiled the Chinese “debt trap” strategy in Tanzania, as he genuinely wages war on corruption.

The Chinese “debt capture strategy” involves the ensnaring of countries with loans, that are collateralized by strategically important national assets especially those with a high long-term value [even if they lack short-term commercial viability.

President Magufuli of Tanzania turns back “Chinee debt trap”

This lopsided arrangements which appears geared towards capturing strategic national public assets / utilities, such as ports, has however suffered a set-back in Tanzania earlier in the week.

This follows the decision by President Magufuli, a crusader against corruption, suspending a predatory loan arrangment with the Chinese signed by his predecessor President Jakaya Kikwete.

President Magufuli who came into office on November 2015, after his predecessor President Jakaya Kikwete signed the Bagamoyo port
deal in 2013. A port located 75 km north of Dar es Salaam Port. The predatory agreement signed during the visit of Chinese President Xi Jinping to the country is financially backed by Oman’s State General Reserve Fund.  

President Magufuli raises Integrity Bar …

In a move that certainly raises the “integrity bar” pretty high for the East African neighbors, and especially Kenya which currently has a number of questionable Chinese funded projects. The statemanly initiative has sent the integrity ripples round the region, the continent and indeed developing countries.

The Chinese use two brush strokes to write the word “crisis.” One brush stroke stands for danger, the other for opportunity. In a crisis, be aware of the danger – but recognize the opportunity – John F. Kennedy

Rogue Loans

John F Kennedy, American President in the 60s, foresaw the Chinese strategy.  And described it citing, The Chinese use two brush strokes to write the word “crisis.” One brush stroke stands for danger, the other for opportunity. In a crisis, be aware of the danger – but recognize the opportunity.

While the Chinese offering of massive loans. with steep and often unattainable repayment plans, has addressed some of Africa’s infrastructure gap, but its approach has led to mounting debt and few, if any, jobs in most countries. Unable to repay the loans, and claims of massive corruption, Sri Lanka handed over an entire port to China on December 2017, on a century-long lease.

The Bagamoyo Port deal in Tanzania was yet another Chinese attempt to gain a strategic foothold in the Indian Ocean [after Srilanka and Djibouti] were goubled up. While the loan agreement with the Kenya government over the Port of Mombasa is shrouded in mystery after the opposition party that raised the issue curiously went silent on the matter.

Another Feather in Magufuli’s cap….

The initiative by President Magufuli, among other initiatives, has endeared him to those who think progress and are uncomfortable with the endemic corruption an unfortunate characteristic of governments in the region. He joins the ranks of Rwanda President Kagame, acknowledged for pulling the small East African nation from near ruin to a growing economic powerhouse.

A fight the Kenya government of President Uhuru Kenyatta appears to have lost, as he cruises for another three years of his final five-year term.

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