Uganda loses airport to China over debt

[KenyanPlato]

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https://www.orissapost.com/uganda-loses-most-prominent-airport-to-china-for-failing-to-repay-loan/

[RV Pundit]

How do you lose an airport that inside your country?

Chinese can run it but under Uganda laws. They can run the buildings - and all - but Uganda police, aviators, revenue collectors and name them will be running their own show in there.

It just forced privatization when Uganda is ready to pay..it can nationalize it back

[KenyanPlato]

How do you lose an airport that inside your country?

Chinese can run it but under Uganda laws. They can run the buildings - and all - but Uganda police, aviators, revenue collectors and name them will be running their own show in there.

It just forced privatization when Uganda is ready to pay..it can nationalize it back

A loss is loss doesn't matter but if such an asset is under someone else management..they can invite your enemy to takeover the managemen. China is playing hard ball with dead beat debtors

[RV Pundit]

Not possible. If they come as managers - they follow Uganda law. Their interest to make money.

A loss is loss doesn't matter but if such an asset is under someone else management..they can invite your enemy to takeover the managemen. China is playing hard ball with dead beat debtors

[KenyanPlato]

Yes and no. If an asset is privatized some it will run under different regulations. Let us say Uganda was giving their airline free gate fees subsidy the new manager can decide to not honor that subsidy. The manager can even invite another airline. The manager can fire employees and bring others. It is big loss to Uganda. Perception wise too it makes Uganda seems to be unworthy borrower ie a risky borrower. This will increase the cost of borrowing for Uganda. This is why China neocolonialism is smarter than the European and American one. They have leap frogged to Brentwoods era of saps in the 90s. M7 will have to run to imf for bailout or stick with China and sing Beijing tune

[RV Pundit]

Yes but what is worse than under development like in Congo or South Sudan? I rather we borrow - and if we cannot run them - invite chinese to do it. Poverty has no dignity. It's not like anybody cared about uganda.

Yes and no. If an asset is privatized some it will run under different regulations. Let us say Uganda was giving their airline free gate fees subsidy the new manager can decide to not honor that subsidy. The manager can even invite another airline. The manager can fire employees and bring others. It is big loss to Uganda. Perception wise too it makes Uganda seems to be unworthy borrower ie a risky borrower. This will increase the cost of borrowing for Uganda. This is why China neocolonialism is smarter than the European and American one. They have leap frogged to Brentwoods era of saps in the 90s. M7 will have to run to imf for bailout or stick with China and sing Beijing tune

[KenyanPlato]

Africans run to China around the end of last decade with hope they could just fuck around with China. However, Xi has decided the expansionist era of former administration is not good for China. He has decided to focus on China internal problems. So he doesn't see any benefit of having this loans renegotiated. He has no time for Africa. His goal is for a stronger China at home

[KenyanPlato]

The problem is that China doesn't see this as a worthy cause to help Uganda and other dead beats. It wants her money back before this debt seriously impact their economy. So they will come there sell what right or assets the can and exit quickly. There like receivership manager

[RV Pundit]

And what is the problem? WB gave a South African farmer 25yr concession of kenya-Uganda railway- and he couldnt paint it.Stop this anti-chinese nonsesne. It nonsense. I first heard in 2004.

China has been god sent in Africa. For first time in history of Africa - we are making serious progress. The denominator CHINA.

Look at kenya - China is our most important partner - and we need to repay the loan - and borrow more.

China is the future. Without China - we would be all lining up US embassy to emigrate. China has made life in Africa hopeful.

If I was kenya next president - I would make china the most important partner - and I would try to leverage their industrial and construction machine - and try to align our goals with chinese goals.

Kenya should aim to become chinese entry point to Africa - encourage Chinese investors, tourists, name it - roll the red carpet for china man - teach kids mandarin- and surely we would be on our way out of poverty.

The west are trying to do the same - invite chinese money - while lying to stupid africans like KenyaPlato (KenyaIdiot)

The problem is that China doesn't see this as a worthy cause to help Uganda and other dead beats. It wants her money back before this debt seriously impact their economy. So they will come there sell what right or assets the can and exit quickly. There like receivership manager

[mankind]

   It is interesting how some people are working overtime to paint China as this evil empire. Much of the information you hear is propaganda being pushed by the western media in bed with their governments because the Chinese have managed to do what was thought impossible . Now it would be good if the people parroting this China bad bullshit did some little homework.  You hear a lot of stuff being put out there from human rights , wolf warrior diplomacy to the most eye catching one ..debt traps. Let me help Plato above because he could really use some truth. The term debt trap started about 2 years ago and was coined by some two students who were tasked to research on Chinese development loans. None of them was an economist  to start with and their report was pretty much meant to disparage every investment that was being done by the Chinese. Among the stuff they used as an example that you've heard over and over again was a port in Sri lanka called Hambatota that had been built by the Chinese. What they cleverly failed to say or is left out deliberately is the fact that the Chinese did not take that port because of inability of the government there to pay them but infact it was a bailout to the government of Sri lanka for bonds due to Western institutions that had matured. Its like us in Kenya giving the Chinese Kisumu port on lease in exchange for them paying off the Eurobond. Ask anyone to give you any other example anywhere in the world for the so called debt trap and you wont get any. Unfortunately people keep repeating this lies and concort new ones every day. Journalists in some of this countries are paid as much as a thousand dollars for each negative article they write about Chinese projects in their own countries a good example was in Zimbabwe with the herald newspaper. Remember as is the case with that port Dubai ports World operates countless sea ports around the world and years back during the Bush administration the Us government blocked such a deal over here. The other propaganda you hear a lot is how those projects can not repay themselves which to a lay person looks bad but the reality is very different. First of all this are not commercial projects like a company setting up a factory and the management is beholden to its shareholders thus the motive is profit driven. Take the example of the SGR in Kenya and much as it might never make enough to pay for itself, the multiplier effect is so huge. Road maintenance costs on that corridor will be low as a result of less heavy trucks on the road, businesses can be able to plan better because rail transportation is much more efficient and predictable. A factory manager somewhere in Kenya all the way to Kampala can reliably plan ahead knowing his goods will arrive at a reliably good time and that reduces down times and the need to keep large inventories associated with a lack of predictability on roads etc. So such capital intensive projects can only be financed by the government because the private sector is meant for profits for its owners or shareholders. Nowhere including in Europe or the US have such projects been profitable just research on Amtrak in the US. Now it is true that Chinese loans are expensive and we can debate the reasons honestly. As opposed to IMF and the World bank the  lending rates are higher but there is a caveat. The later give fairer lending rates but come with a lot of baggage attached to them eg countless feasibility studies, environmental and the good old you have to accept this and that western values of democracy etc. It is interesting how people get swayed so easily. Just do a quick research amongst your buddies on how much for example the total Kenyan debt is and how much is owed to the Chinese and you will hear the craziest of stories. Kenya for example has a total debt of about 70 billion dollars and less than 10% of that money is owed to the Chinese but the average folk including some very educated ones  will tell you we owe trillions of shilling to the Chinese. Hopefully Plato above will stop this anti Chinese propaganda and search for the truth.

[RV Pundit]

Absolutely on point. Just a little correction - China which is US and EU largest creditor - offer very good loan terms - almost IMF/WB - low interest mostly - long maturity - but being a little wiser - they insist on some securitization (and why shouldnt they) - and if not - on heavy insurances.

If China loan is bad - let the US and EU repay 2 trillion each - they owe china.

Western nation now mostly depend on China - for loans and manufactured goods. But they wish African didnt discover that China is the new game in town - so they borrow from China - and we go borrow from them.

   It is interesting how some people are working overtime to paint China as this evil empire. Much of the information you hear is propaganda being pushed by the western media in bed with their governments because the Chinese have managed to do what was thought impossible . Now it would be good if the people parroting this China bad bullshit did some little homework.  You hear a lot of stuff being put out there from human rights , wolf warrior diplomacy to the most eye catching one ..debt traps. Let me help Plato above because he could really use some truth. The term debt trap started about 2 years ago and was coined by some two students who were tasked to research on Chinese development loans. None of them was an economist  to start with and their report was pretty much meant to disparage every investment that was being done by the Chinese. Among the stuff they used as an example that you've heard over and over again was a port in Sri lanka called Hambatota that had been built by the Chinese. What they cleverly failed to say or is left out deliberately is the fact that the Chinese did not take that port because of inability of the government there to pay them but infact it was a bailout to the government of Sri lanka for bonds due to Western institutions that had matured. Its like us in Kenya giving the Chinese Kisumu port on lease in exchange for them paying off the Eurobond. Ask anyone to give you any other example anywhere in the world for the so called debt trap and you wont get any. Unfortunately people keep repeating this lies and concort new ones every day. Journalists in some of this countries are paid as much as a thousand dollars for each negative article they write about Chinese projects in their own countries a good example was in Zimbabwe with the herald newspaper. Remember as is the case with that port Dubai ports World operates countless sea ports around the world and years back during the Bush administration the Us government blocked such a deal over here. The other propaganda you hear a lot is how those projects can not repay themselves which to a lay person looks bad but the reality is very different. First of all this are not commercial projects like a company setting up a factory and the management is beholden to its shareholders thus the motive is profit driven. Take the example of the SGR in Kenya and much as it might never make enough to pay for itself, the multiplier effect is so huge. Road maintenance costs on that corridor will be low as a result of less heavy trucks on the road, businesses can be able to plan better because rail transportation is much more efficient and predictable. A factory manager somewhere in Kenya all the way to Kampala can reliably plan ahead knowing his goods will arrive at a reliably good time and that reduces down times and the need to keep large inventories associated with a lack of predictability on roads etc. So such capital intensive projects can only be financed by the government because the private sector is meant for profits for its owners or shareholders. Nowhere including in Europe or the US have such projects been profitable just research on Amtrak in the US. Now it is true that Chinese loans are expensive and we can debate the reasons honestly. As opposed to IMF and the World bank the  lending rates are higher but there is a caveat. The later give fairer lending rates but come with a lot of baggage attached to them eg countless feasibility studies, environmental and the good old you have to accept this and that western values of democracy etc. It is interesting how people get swayed so easily. Just do a quick research amongst your buddies on how much for example the total Kenyan debt is and how much is owed to the Chinese and you will hear the craziest of stories. Kenya for example has a total debt of about 70 billion dollars and less than 10% of that money is owed to the Chinese but the average folk including some very educated ones  will tell you we owe trillions of shilling to the Chinese. Hopefully Plato above will stop this anti Chinese propaganda and search for the truth.

[Georgesoros]

Uganda lost the ability to manage its property. So, China appoints its own people because its her property.
Am not against China rather their govt policies of destruction. Forceful policies about Taiwan etc. Since they have the money they can manipulate them and you wont be able to access anything made in China even from private co. Cant export to China friendly countries too.

[RV Pundit]

You dont make any sense.
If an SOE borrow loan - for example Mumias or Panpaper or KCC - the creditor appoint the receive manager. Most of time they put it on a fire sale - China normally assist in managing it and turning  it around. Chinese work very hard...

If its such a critical asset - the Uganda Treasury pick the tabs - and keep it.

As for Taiwan - China even when it could take Hong Kong didnt - Taiwan the same - Chinese want a united country - and Taiwan can keep their independence - two state solution.

Taiwan are wasting time because it just a matter of time. They should copy Hong-Kong model.

As long as China is one tribe of Hans - with Taiwan - all about 95 percent - it going to be impossible to separate them. Taiwan should negotiate for a two state deal with China.

As for now Taiwan call itself China...China call itself China.

Uganda lost the ability to manage its property. So, China appoints its own people because its her property.
Am not against China rather their govt policies of destruction. Forceful policies about Taiwan etc. Since they have the money they can manipulate them and you wont be able to access anything made in China even from private co. Cant export to China friendly countries too.

[KenyanPlato]

You think anyone in world want to help Africa.,what will they get in return? China cares more for access to western world markets and technology to care about developing Africa.

Kenya should borrow with whichever lender has better terms. China can get raw materials and agricultural good for a better price from West. China supply chain is linked to the west. China and west will succeed together or fail together. If China cannot get the best deal of exploitative nature in kenya or elsewhere they will not work to get it.

Uhuru has tries to borrow several times from China and they have turned him down. Xi won't allow the reckless lending of the past.

Kenya is just being fucked from all angles. China on the rear side and west from the front. Now we are under Brentwood receivership. China has sold most of the African debt to west

Pundit China is not in business of rescuing anyone

[RV Pundit]

China CCP is meritocracy. Chinese have world best leaders. Xi and rest have Phds. Chinese leaders negotiate very good deals and if youre not careful - they can finish you.

Uhuru  and Raila went to China thinking like many that 5 foot squinted eyes chinese doesnt know anything. He was asked 3 questions and he failed to answer. LOAN DENIED. The Political risks you're seeing now - China saw in 4yrs ago

You think anyone in world want to help Africa.,what will they get in return? China cares more for access to western world markets and technology to care about developing Africa.

Kenya should borrow with whichever lender has better terms. China can get raw materials and agricultural good for a better price from West. China supply chain is linked to the west. China and west will succeed together or fail together. If China cannot get the best deal of exploitative nature in kenya or elsewhere they will not work to get it.

Uhuru has tries to borrow several times from China and they have turned him down. Xi won't allow the reckless lending of the past.

Kenya is just being fucked from all angles. China on the rear side and west from the front. Now we are under Brentwood receivership. China has sold most of the African debt to west

Pundit China is not in business of rescuing anyone

[Georgesoros]

China just wants access, not helping any African.
Having a PHD only means youre able to add 1+1=2 better than your average neighbor. It doesn't mean you have wisdom.

[RV Pundit]

China of course want good for china - and they have better deal for us Africans - than the west.
China is meritocracy - it simply mean the best rise to the top - including in party politics.
There is no tribalism or racism - because 90 percent is one tribe.
To rise in China starts from village all the way - without tribal or racist excuse.

China just wants access, not helping any African.
Having a PHD only means youre able to add 1+1=2 better than your average neighbor. It doesn't mean you have wisdom.

[mankind]

You dont make any sense.
If an SOE borrow loan - for example Mumias or Panpaper or KCC - the creditor appoint the receive manager. Most of time they put it on a fire sale - China normally assist in managing it and turning  it around. Chinese work very hard...

If its such a critical asset - the Uganda Treasury pick the tabs - and keep it.

As for Taiwan - China even when it could take Hong Kong didnt - Taiwan the same - Chinese want a united country - and Taiwan can keep their independence - two state solution.

Taiwan are wasting time because it just a matter of time. They should copy Hong-Kong model.

As long as China is one tribe of Hans - with Taiwan - all about 95 percent - it going to be impossible to separate them. Taiwan should negotiate for a two state deal with China.

As for now Taiwan call itself China...China call itself China.

Uganda lost the ability to manage its property. So, China appoints its own people because its her property.
Am not against China rather their govt policies of destruction. Forceful policies about Taiwan etc. Since they have the money they can manipulate them and you wont be able to access anything made in China even from private co. Cant export to China friendly countries too.

    Mainland China will take over Taiwan by force if they choose to and there is nothing anyone will do . All scenarios in war games by the US military have shown we cant do shit about it. There are 39 chinese military bases  within striking distance of Taiwan when the US only has one in Okinawa. I pity anyone especially those of us who are US nationals cheering this madness because most of us are deployable. Anyone who thinks China is those third world countries we have been destroying for decades better think again. Russia took Crimea and all we did was shout and sanction them which havent worked either. Let the Chinese solve their own unfinished civil war.

[Stockguru]

China CCP is meritocracy. Chinese have world best leaders. Xi and rest have Phds. Chinese leaders negotiate very good deals and if youre not careful - they can finish you.

Uhuru  and Raila went to China thinking like many that 5 foot squinted eyes chinese doesnt know anything. He was asked 3 questions and he failed to answer. LOAN DENIED. The Political risks you're seeing now - China saw in 4yrs ago

You think anyone in world want to help Africa.,what will they get in return? China cares more for access to western world markets and technology to care about developing Africa.

Kenya should borrow with whichever lender has better terms. China can get raw materials and agricultural good for a better price from West. China supply chain is linked to the west. China and west will succeed together or fail together. If China cannot get the best deal of exploitative nature in kenya or elsewhere they will not work to get it.

Uhuru has tries to borrow several times from China and they have turned him down. Xi won't allow the reckless lending of the past.

Kenya is just being fucked from all angles. China on the rear side and west from the front. Now we are under Brentwood receivership. China has sold most of the African debt to west

Pundit China is not in business of rescuing anyone

Meritocracy .. that is debatable but the high ranking CCP cadre is talented.. About questions that they asked Uhuru, that is BS. Xi came in with a Reform agenda. One of the reforms he wanted was economic. He targeted Wastage. He saw those grandiose ideas such SILK road and the infrastructure investments in Africa as some of what he needed to reform.

Simpy Xi administration crackeddown on Reckless lending. The lending was to be both Internal (Peer to Peer Lending was going crazy in mainland china) and External. So now the Chinese lenders are tasked in doing all the have to do to get their money back and close these risky accounts

I do not see China revising her policy on this. It has nothing to do with Uhuru leadership or misleadership.

So Kenya now had no choice but to go back to IMF and International markers. What we know is that IMF just gave Kenya credit facility that I believe is meant to help kenya meet her debit obligations and not default.

The conditions are what is Killing Kenyan businesses from over taxattion..  Ruto may have to make a decision and default on some of these loans to get out of the debt trap we are in. Seems Museveni has gone senile and is also caught up in the same mess. I think Museveni needs to be removed from Power. He is senile and his reaction to Covid is doing a lot of harm to his country than is necessary

With COVID Super Mutation being blamed on Africa it is going to be a Wasted decade for East Africa economies. US and West are all looking inwards. they are paying lip service to investing in Kenya and EA. Mangufuli left a big shit in TZ and Madam is trying everything she can to reintegrate but no one is buying

My prediction is that we are fucked for at least 10 to 20 years. In Kenya i expect Institutions to start going bankrupt one by one. Our Universities are bankrupt, Counties are barely making it.. Next it will healthcare and then we will be back to default settings

[Georgesoros]

I wouldnt say that EA is going to have a rough time. Rather there is significant development coming, so get prepared. TZ is sleepy and UG is senile but KE will explode into Rwanda and beyond. Somalia's kababs will be pushed away since most youth will be busy making a living. This time China will be on the sidelines.