African States have been told to improve on the quality of their
negotiation towards China Financing for infrastructural projects.
China is a major donor to African states, but many are
worried that the mountains of cash for infrastructure development might actually
end up as a debt trap for many African countries.
In a discussion on destructive Allies and supportive Enemies
at the Geopolitics conference at Makerere University, experts have said Uganda
and many African countries have not negotiated the China financing well, as
interests still remain high.
Rolf Paasch, Director
Friedrich-Ebert-Stiftung says while dealing with China,the results will come
depending on ones negotiation skills. He says there are countries who had
unfortunate treaties with China, but there are also countries who have taken
some of China’s loans and rejected many.
He says also although many countries went into the China debt
trap, China has been reacting fast by relieving countries of their debt, citing
Sri Lanka. He says countries should be careful and self-confident while dealing
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Charles Onyango Obbo, a senior journalist and Publisher of the
Explainer site says many Africans do not
negotiate on the interest of the loans and they also get a very small payback
time. He says countries need not only to improve the quality of their
negotiations with China, but diversify.
He says several countries have already shown that even with
China, you can get a better deal.
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According to the International Monetary Fund (IMF) and World
Bank, Africa is heading towards a debt crisis. Uganda's debt has hit a high 42
China is the largest creditor to Uganda disbursing 39 per
cent of the total credit in the financial year 2017/2018, surpassing the
traditional creditors such as the World Bank (21 per cent) and the African
Development Bank (8 per cent).