Chinese loans and investment in infrastructure have been huge

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African leaders say China was the only country willing to meet their infrastructure needs. Critics argue that China has built white elephants, fostered corruption and en­couraged indebtedness

expressway curves 27km through Kenya’s capital. Built by the China Road and Bridge Corporation, a state-owned enterprise , the road will open later this year. Under its concrete pillars, Nairobians share their views of it. Samwel Juma, a student, calls it “a project for the future” that will unclog traffic jams. But Gabriel Kihoti, a hairdresser, questions why it was a priority when the cost of food and fuel is surging. Francis Muriu, a cab-driver, calls it “a road for the rich, not the poor”.

Like the West, China substantially increased its development finance to Africa in the 2000s. Unlike the West, most of it took the form of loans at or near market rates, rather than aid. From 2000 to 2020 Chinese state financiers lent $160bn to African governments. Whereas Western aid or World Bank lending is typically widely spread around, almost two-thirds of China’s loans to Africa were for infrastructure. From 2007 to 2020, Chinese infrastructure financing for sub-Saharan Africa was 2.

There is little substance to claims of “debt-trap diplomacy”, in which China hoodwinks borrowers so as to seize assets. It is more accurate to say that China’s hard-nosed approach conflicts with its seemingly benevolent rhetoric. China may not be a duplicitous negotiator—but it is ruthlessly self-interested. Last year AidData, a research group at William & Mary University in Virginia, examined 100 contracts between Chinese entities and developing countries.

A chapter in “Banking on Beijing”, co-written by Bradley Parks of AidData, suggests that the average Chinese project raised growth by 0.41-1.49 percentage points after two years—a large boost. The authors find that in areas around a project night-time light increased by 8%. Often the most effective projects are unglamorous, such as a road linking Nairobi to nearby Thika. Yet whether the loans could be put to better use is another question.

 

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Your clients are bound to be too of the league in exploitative loans. No opportunity missed.

China also lends money to the west too, and no African country criticizes them.

China is one astute creditor and risk undertaker in Africa, who understands how to recoup and recover her money. Can anyone blame them for this? No now!

So let's talk about the IMF and World bank!?

it's not misguided, it's intentional misinformation or propaganda.

Hard to say No to cheap Loans

African govts n leaders' fond of CHN's investments n to build infrastructures by CHN's loans as they could get HUGE CHN's bribery, right? CHN's making African countries its colonies as they can't pay CHN's debts. The built infrastructures be owned by CHN n to control their govts

News and analysis with a global perspective ❌ News and analysis with a Anglo perspective ✔️

Buy 'critics' you mean you and a bunch of others confused with building stuff to make a tradable partner.

some would say The Economist is a good magazine, but critics would argue that this is a rag full of vitriolic bias and innuendos ... all it does is to corrupt and mislead their readers with fear that leads to hate.

Critics are reapting almost completely the critical arguments of yesteryears estamped J.Giri d'Afrique en Panne,J.Ziegler Mains bas sur l'Afrique, L'Afrique MalPartie &ÉtrangléeR.Dumont.P.Hugon. S.Amin. P.Judet, E.Amazio& F.Oyegbola dénonced those practices in the past.ALLDEJA VU

Critics =The western Critics. They don't want other countries to play a bigger role in the world. If there is such a country, they will do whatever they could to undermine it.

LOL..they are always so quiet..and reserved Grandma always said BEWARE OF THE QUIET ONES.. makes you wonder...if the covid was a set from Africa defending themselves..I wouldn't blame them..Sounds like SELF DEFENCE

Still better than USA's coup d'états and finince of mass murderers...

🥸

In Peru I recall traveling on my motorcycle from from Ilo to La Yarada in an amazingly good highway complete with fancy light posts and LED lights. Hardly any other users. Apparently China built it.

You make a deal with the devil you end up in hell

Chinese infrastructure keep collapsing all around the world

The more sour of Economist , the more tabloid- like newspaper at street corner

glad kind

Well, the United States does the same thing, just because the West does it, the others can't do it? Is the West always right? With the West it is good to borrow

China's help is a debt trap. Many examples: Srilanka, Pakistan, Nepal and list grows

No doubt China is serious about running business development around Globe...and supporting low-level economies....Thanks to the Chinese people and Govt.

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