lørdag 29. desember 2018

China To Take Over Kenya's Largest Port Over Unpaid Chinese Loan

What happens if China does takeover the port? Implications would be grave, including the thousands of port workers who would be forced to work under the Chinese lenders. Management changes would immediately follow the port seizure since the Chinese would naturally want to secure their interests. Further, revenues from the port would be directly sent to China for the servicing of an estimated Sh500 billion lent for the construction of the two sections of the SGR.

In other words, a Chinese-funded project in Africa, is about to be confiscated by China, which will appoint Chinese management, upstream all revenues to China (and, eventually, profits after enough fat is trimmed), and provide China with its own strategist port in east Africa.

A brilliant "investment" scheme? Why yes, and it won't be the first time China has used it: in December 2017, the Sri Lankan government lost its Hambantota port to China for a lease period of 99 years after failing to show commitment in the payment of billions of dollars in loans. The transfer, according to the New York Times, gave China control of the territory just a few hundred miles off the shores of rival India. It is a strategic foothold along a critical commercial and military waterway.