I think we need infrastructure first. No serious manufacturing can happen without a railway. We don't need band-aids. We are fixing this in serious way. You cannot thrive when it transport cost is 2-3 times the world average, electricity cost the same - even if we gave you all the incentives.
I am not even sure who will lend us what China has given us at those rates...
Half the loan is zero-interest and we are talking 8B dollars. Only IMF and WB can compete with Chinese on such kind of loans...but IMF & WB will not give us even 1/4 of that and they will demand a pound of our flesh before they even do that.
Ofcourse you disagree. The loan isn't a grant is it? There's empirical evidence to show that when taxes are cut KRA end up collecting more money. Since its not a grant at best its a deffered repayment. Multiplier effect of government spending doesn't beat private sector spending in any economy. $4b can be borrowed in international market and principal repayment to be arranged to mirror what the Chinese are offering.