Sri Lanka hands over port to China to pay off debt

Simiyu22 · September 11, 2018, 12:09am

Bottom line is poor governance and loans is a recipe for disaster. A debt is a debt, regardless of the source.IMF, worldbank, private lenders or Chinese. IMF and Worldbank extend loans that depend on almost perfect execution to succeed. Chinese loans have been readily available sometimes in situations when governments are clearly not able to repay.
Zambia has been a collapsing economy since the 1970s. And can be traced to Kenneth Kaunda. Collapsing commodity prices begun their undoing. Then they reduced tariffs on textile products. This increased importation of textiles that destroyed their local manufacturing creating huge unemployment. They then jumped to the IMF for rescue. IMF extended loans and conditions over the last 30 years including privatization of local industries. Some privatized industries ran better than before. But most have since collapsed. The only way for this country to survive is total forgiveness of external debt.

kiLo · September 11, 2018, 2:19am

Ukiona mwenzako akinyolewa…

Nattydread · September 11, 2018, 2:37am

Like buying an alcoholic a case of whisky.

Without a change of political structure and imposition of functioning systems, what would make the spendthrift ways and mismanagement not simply repeat themselves again?

Simiyu22 · September 11, 2018, 3:42am

The problem with Zambia is that their debt repayments take up so much that it leaves little for social development. They have to borrow to make make debt repayments. Without social development, you cannot get a means of developing capital. Its a two way problem.
Question is which problem is easier to fix. With the current political situation , can you imagine how difficult it is to fix the political structure.

spear · September 11, 2018, 5:10am

Good morning, Malaysia simply wants to take the lead in the build itself instead of China. Well they have that capacity to build it so I don’t see why now. If they can let them built it themselves. I agree with this decision.

spear · September 11, 2018, 5:19am

Nattydread:

Zambia hands over International Airport.

[SIZE=5][B]China to take over Zambia’s international Airport for debt repayment[/B][/SIZE]

Signing a contract with China is like, ascribing to the boiling frog effect; a fable describing a frog being boiled alive slowly.

If you drop a frog suddenly into boiling water, it will jump out, but if you put that same frog in a vessel of water and start heating the water gradually, it will adjust its body temperature accordingly until it reaches a stage beyond its capacity and dies foolishly.

It’s rather pathetic how China is re-colonizing Africa by appealing to the ignorance and selfish interests of our leaders. Today, the Chinese are offering mouthwatering deals to Africa, both in cash transactions and the outmoded or rather defunct barter trade which seem very attractive on the outlook but dangerous in reality.

The Zambian government contracted the Chinese, lazy-thought and glossed over details thinking they were granting consent to gernuine terms but the whole thing just morphed into modern day colonialism.

China is now proposing to take over the Kenneth Kaunda International Airport should Zambia Government fail to pay back its huge foreign debt on time. The issue of whether Zambia posses the required economic muscle to repay that debt is in contention considering the amount involved. It’s typical of the Chinese strategy.

That moreover is not the only thing Zambian suffered from China; the Chinese own 60% shares of the Zambian National Broadcasting corporation which means, Chinese have an influence over what should or should not be premiered on their sets.

Ghana is equally towing same lane as our leaders have started signing contracts already; Chinese owned company, STARTIME is gradually gaining grounds over our major institutions, our biggest mining companies will soon be “taken” over by a Chinese company and many others.

Now if this is not modern day slavery, what then is it? The 21st century African slave is never in chain; we are in debt caused by the ignorance or selfish interests of our leaders. Pathetic!

Source: Dily Rant Ghana, Reporting by Richard Krah.

This is why I say the west spin on this airport is off. First no one will tell you that through China the airport has been rebuilt to a beautiful new modern terminal. Its going to be one of my favorite airports in Africa. If it was in this region it would have seriously rivalled JKIA. Now since repaying this loan for the build is a challenge then they want that loan converted to equity shareholding. They will recoup their investment from the share of revenue paid by airlines and airport operators for using the new terminal at the airport. As the state still controls security at the airport then its a win-win outcome.
[ATTACH=full]192385[/ATTACH][ATTACH=full]192386[/ATTACH][ATTACH=full]192387[/ATTACH][ATTACH=full]192388[/ATTACH][ATTACH=full]192389[/ATTACH][ATTACH=full]192390[/ATTACH][ATTACH=full]192391[/ATTACH]
Zambia also borrowed from Russia a loan to restart its national airline and it has ordered 5 new planes from Russia for the same. Ethiopian airlines has boughts shares in the airline to help them start and survive the harsh first few years of infancy. Give the west media a few months to thrash that as well. They have ordered the 5 new Sukhoi superjet 100. Its a direct competition for Embraer E2 which KQ uses on regional routes.
[ATTACH=full]192394[/ATTACH]
[ATTACH=full]192395[/ATTACH]

mtadao · September 11, 2018, 5:30am

Where does the Chinese get all this cash to lend to multiple continents? What are they doing right?

Ole_masai · September 11, 2018, 5:33am

manufacturing, cheap labor and exports. power is cheap, they have coal.

Useless_Spectator · September 11, 2018, 5:39am

Nattydread:

Zambia hands over International Airport.

[SIZE=5][B]China to take over Zambia’s international Airport for debt repayment[/B][/SIZE]

Signing a contract with China is like, ascribing to the boiling frog effect; a fable describing a frog being boiled alive slowly.

If you drop a frog suddenly into boiling water, it will jump out, but if you put that same frog in a vessel of water and start heating the water gradually, it will adjust its body temperature accordingly until it reaches a stage beyond its capacity and dies foolishly.

It’s rather pathetic how China is re-colonizing Africa by appealing to the ignorance and selfish interests of our leaders. Today, the Chinese are offering mouthwatering deals to Africa, both in cash transactions and the outmoded or rather defunct barter trade which seem very attractive on the outlook but dangerous in reality.

The Zambian government contracted the Chinese, lazy-thought and glossed over details thinking they were granting consent to gernuine terms but the whole thing just morphed into modern day colonialism.

China is now proposing to take over the Kenneth Kaunda International Airport should Zambia Government fail to pay back its huge foreign debt on time. The issue of whether Zambia posses the required economic muscle to repay that debt is in contention considering the amount involved. It’s typical of the Chinese strategy.

That moreover is not the only thing Zambian suffered from China; the Chinese own 60% shares of the Zambian National Broadcasting corporation which means, Chinese have an influence over what should or should not be premiered on their sets.

Ghana is equally towing same lane as our leaders have started signing contracts already; Chinese owned company, STARTIME is gradually gaining grounds over our major institutions, our biggest mining companies will soon be “taken” over by a Chinese company and many others.

Now if this is not modern day slavery, what then is it? The 21st century African slave is never in chain; we are in debt caused by the ignorance or selfish interests of our leaders. Pathetic!

Source: Dily Rant Ghana, Reporting by Richard Krah.

Has anyone actually noticed that all articles claiming that China has taken over Zesco and broadcasting corporation have no source? Well I found one with a source, take a read;
http://www.xinhuanet.com/english/2018-09/09/c_137456365.htm
Zambia refutes report of Chinese firms taking over public assets due to debt
Source: Xinhua | 2018-09-09 19:09:18 |
Copyright © 2000-2018 XINHUANET.com All rights reserved. LUSAKA, Sept. 9 (Xinhua) – The Zambian Government on Saturday refuted a media report that it was in talks with Chinese companies for the latter to take over public institutions due to debt.
Chief government spokesperson Dora Siliya tweeted a denial of the report that said the government was seeking to sell some public assets, pointing out that some of the China-funded projects had not even been completed.
“Govt’s position is that all stories relating to sale or takeover of public assets such (as) ZNBC (state broadcaster), Kenneth Kaunda International Airport, and ZESCO (power utility) by China are false,” she said on Twitter.
“ZNBC digital migration and KK AIRPORT projects not even complete yet. How then can one refer to loan default in view of grace periods?” she asked.
Last week, the African Confidential fortnightly reported that talks were underway for a Chinese firm to take over Zambia’s power utility due to debt.

A well orchestrated hoax perhaps? Were we all taken for fools?
Discuss.

spear · September 11, 2018, 7:52am

Trade deficit, China is the leading trading partner of almost all nations in the world including the usa. That means they will have more forex coming in than going out. Its also be the world economic power by 2022 by the usa treasury estimates. China has so much $$$ reserves such that its reaching a point the federal reserve chairman will have to talk to China regularly to maintain $$$ liquidity globally.

spear · September 11, 2018, 8:26am

Purple:

Soma hii

[SIZE=6]China’s exports are slowing. The trade war will make things worse[/SIZE]

The Chinese economy’s massive export engine is slowing down as the trade war heats up. A new salvo from the United States could push it into reverse.

Growth in Chinese exports weakened to just under 10% in August, down from more than 12% the previous month, according to government data published over the weekend. The performance is significantly below China’s average for the year so far.

The situation is likely to worsen in the coming months as the trade war between China and the United States escalates. President Donald Trump said Friday he’s prepared to impose another huge wave of tariffs on $267 billion of Chinese products.

On top of tariffs already in place or in the works, such a move would apply new taxes to the entire $505 billion of goods the United States imported from China last year.

As a result, China’s export growth “could tumble to low single digits and even negative territory in coming months,” analysts at investment bank Nomura wrote in a research note. That would pile more pressure on an economy that is already battling serious headwinds, they said.

The weakness in Chinese trade is so far coming mainly from slowing growth in exports to big trading partners like the European Union and Japan.

Falling exports could pressure Beijing to find new ways to juice economic growth, according to Nomura.

Chinese officials have already turned to tax cuts, infrastructure spending and looser monetary policy as they seek to prop up growth.

The Chinese economy began cooling off this year, and signs of stress are multiplying. Data last week showed Chinese factories are losing export orders and suffering from weakening growth in infrastructure investment.

“The incoming exports slowdown suggests it might take longer for China’s growth to recover,” the Nomura analysts said.

China’s stock market and its currency have been pummeled in recent months by investors concerned about the health of the country’s economy.

But many analysts say they doubt authorities will purposefully devalue the Chinese yuan against the dollar in order to reignite export growth, as this could set off turmoil in financial markets and send a flood of money pouring out of the country.
https://money.cnn.com/2018/09/10/news/economy/china-exports-trade-war/index.html

CNN reports…:D:D:D:D off course they would say that, its been only a month or two and they are in a hurry to call the game with a win before even 1st quarter is midway. China is playing the long game while usa is trying anything for short term victories. The usa right now is simultaneously starting a trade war with almost all nations. Its burning up favours and good standing with everyone with unilateral actions. Let’s await the results in a few years.

Then you need to explain what happened yesterday, you left me with egg on my face for something I have zero control over.

Mangele · September 12, 2018, 1:43pm

Nattydread:

Zambia hands over International Airport.

[SIZE=5][B]China to take over Zambia’s international Airport for debt repayment[/B][/SIZE]

Signing a contract with China is like, ascribing to the boiling frog effect; a fable describing a frog being boiled alive slowly.

If you drop a frog suddenly into boiling water, it will jump out, but if you put that same frog in a vessel of water and start heating the water gradually, it will adjust its body temperature accordingly until it reaches a stage beyond its capacity and dies foolishly.

It’s rather pathetic how China is re-colonizing Africa by appealing to the ignorance and selfish interests of our leaders. Today, the Chinese are offering mouthwatering deals to Africa, both in cash transactions and the outmoded or rather defunct barter trade which seem very attractive on the outlook but dangerous in reality.

The Zambian government contracted the Chinese, lazy-thought and glossed over details thinking they were granting consent to gernuine terms but the whole thing just morphed into modern day colonialism.

China is now proposing to take over the Kenneth Kaunda International Airport should Zambia Government fail to pay back its huge foreign debt on time. The issue of whether Zambia posses the required economic muscle to repay that debt is in contention considering the amount involved. It’s typical of the Chinese strategy.

That moreover is not the only thing Zambian suffered from China; the Chinese own 60% shares of the Zambian National Broadcasting corporation which means, Chinese have an influence over what should or should not be premiered on their sets.

Ghana is equally towing same lane as our leaders have started signing contracts already; Chinese owned company, STARTIME is gradually gaining grounds over our major institutions, our biggest mining companies will soon be “taken” over by a Chinese company and many others.

Now if this is not modern day slavery, what then is it? The 21st century African slave is never in chain; we are in debt caused by the ignorance or selfish interests of our leaders. Pathetic!

Source: Dily Rant Ghana, Reporting by Richard Krah.

Chinese are Bold and Ruthless:

https://www.youtube.com/watch?v=iAl3UBdER5s

https://www.youtube.com/watch?v=U5jTGB11Q1c

Mangele · September 19, 2018, 3:40pm

https://scontent-dfw5-1.xx.fbcdn.net/v/t1.0-9/41957996_2141257782797003_6413041340124233728_n.jpg?_nc_cat=1&oh=94422e96bd88b1e9dbfa48163220d570&oe=5C213D2Bhttps://scontent-dfw5-1.xx.fbcdn.net/v/t1.0-9/42058408_2141257712797010_4555392814086619136_n.jpg?_nc_cat=1&oh=5f6807eb635b88d391e7137c6ad8d73e&oe=5C2B4722https://scontent-dfw5-1.xx.fbcdn.net/v/t1.0-9/42058452_2141257749463673_4786163605923954688_n.jpg?_nc_cat=1&oh=b7c5654d558a76707ecfe8a8d5622e8e&oe=5C157209
In a new recent development, the Chinese in Zambia now officially welcome as part of The Police Force.