Tanzania President cancels US$10billion Chinese loan; refers to the terms and conditions as one that can only be accepted by mad people.
Is Magufuli a demigod or the general African leadership has started stepping up to Chinese Killer loans? Let’s digest it.
A few years back, African leaders developed a sudden inexplicable craze for Chinese killer loans with terms and conditions that beats logic. They sign loan agreements that they know very well they cannot pay back within the agreed time frame but mostly proceed with the loans just for the kickbacks attached and the benefits some individual politicians stand to get from such contracts to the detriment of the development of their respective nations. In most cases, the defaulted loans lead to the seizure of major facilities to make-up for the amount involved.
Does this imply that there are no countries in Africa that are still taking these killer loans? No! some countries still sign such agreements, mostly at the blind side of the public and the consequences will soon be seen. The acknowledgment of the above bold steps taken is mainly to encourage the African leadership to move away from the killer loan mindset which is a looming neocolonial trap and focus more on transformational ideas to make good use of our resources. Even if they will consider signing such, they should come with reasonable and mutually beneficial terms.