preparing to seize some major assets in the African nation of Kenya, as a result of debt-trap diplomacy.
African media reports that Kenya may soon be forced to relinquish control of its largest and most lucrative port in Mombasa to Chinese control.
Other assets related to the inland shipment of goods from the port, including the Inland Container Depot in Nairobi, and the Standard Gauge Railway (SGR), may also be compromised in the event of a Chinese port takeover.
Kenya has reportedly taken extremely large loans from the Communist government for the development of some major highways, and especially for the SGR, which forms a crucial transport link to and from Nairobi for the import and export of goods through Mombasa.
Very interesting, if true. But this makes the report sound a little over the top:
The African Stand also seems to suggest that the SGR, which is operated by the Chinese, may have been designed to be a “loss-making venture.”
With a reported loss of KES 10 billion (US$98 million) in its first year of operation, it would be nearly impossible to repay the loans taken for its construction in the time requested.
Yes, the Chinese might have been hoping for defaults so they could get hold of resources. But if that were so, with Zambia (and possibly other countries) also facing defaults, I wonder if they would be underestimating resistance to collection.
We'll see if this is hardball negotiating or new colonialism. My guess is the former.
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