Have you ever been in a situation where you had to borrow money in order to pay rent, get medications, feeding or even for business and you are unable to pay back? Then imagine that while you were struggling to pay back you have tried different means but no one seem to be able to help you, few weeks before then you had lost your job because the company folded up and you were not given anything as compensation, at that point you feel totally helpless and distressed but suddenly your lender comes to your rescue by asking to gain access to everything you own for ninety nine years, well this happens to be the case between China and some African countries.
African countries have been depending on China for loans and China provides the loan willingly, if the loan could be paid back on time then it is fine but if not, ninety and nine percent of the country’s specified asset will be controlled by China.
A Brief Look at some African Countries That Are Indebted to China.
Sudan: Sudan holds a lasting record of having the longest civil war among African countries, this war resulted into the splitting of the country into what we now have as Sudan and the South Sudan, during the period of the war, and over two million lives were lost. China has pledged to give out a loan of $60 billion to Sudan, this great investment in Sudan was exchanged for a right of 75% of Sudan’s oil industry, and it will be good to know that some of the loan obtained from China was used to upgrade the production of oil. Apart from oil, china also has a large percentage of holdings in Sudan’s gold as well as their loyalty for a period of ninety nine years, Sudan has been estimated to owe China a sum of $6.4 billion dollars and this is without adding the $60 billion China will be giving to Sudan soonest.
Congo: Congo is said to be indebted to China at the rate of $7.3 billion and are currently looking for a bail out. IMF calculated Congo’s loan to be at 117% unlike Congo’s government’s report which claim to be in debt of 77% in GDP ratio. China was a major part of the gigantic construction in Congo, some of those constructions are the motorways, hydroelectric dams, airports and so on.
Kenya: Kenya has been pumping some good money into its railway construction and every of the money used for the construction has been coming from China. $3.5 billion was first used, but the president wanted to do more so he got an additional loan of $3.6 billion for the purpose of extension, the budgeted money for the loan has been estimated to be on a high side considering the fact that the grace China has given them is only for a period of ten years before they begin to pay back but according to sources, the President is not really concerned about that as he will no longer be in power by that time.
There are so many African nations that are indebted to China and instead of the list to go downwards, it keeps increasing all the time and China is ever ready to help. Africa that is blessed with so many resources seem to have a similar problem in my own opinion which is the problem of bad leadership.