African Countries warn China, "No more Loan trap", Tanzania aborts Chinese loan, calls their mindset a looming neo-colonial trap

 

In a bold move, Tanzanian President John Magufuli has cancelled Chinese loan of an amount as huge as $10 billion, referring to its terms and conditions as one that can only be accepted by a drunkard or a mad person. Following a series of constructive criticisms by reputable organizations and general outcry by concerned African citizens about the dire consequences of these killer loans on the continent, some of the leaders seem to be taking certain commendable actions to save their dying reputations by building some courage to confront China.

 

 

The Tanzanian head of state, John Magufuli has apparently cancelled Chinese killer loan of ten billion US dollar 10 billion agreement signed by his predecessor, Jakaya Kikwete with Chinese investors to construct a port.

 

 

The Chinese investors initially agreed with the erstwhile Tanzanian administration to build the said port on condition that, they will be granted a 30years guarantee, 99years uninterrupted lease with an attached outrageous demand that, the Tanzanian government will have absolutely no power to raise concerns on whoever invests in the port during the period stated.

 

 

However, In the words of John Magufuli, the Chinese terms and conditions could only be accepted by mad people. He even initiated a renegotiation with the investors to bring down the lease period to 33 instead of the initial 99 years negotiated.

 

 

Busting China’s intentions of trapping the countries with unbeatable illogical terms and conditions African leaders have developed sudden inexplicable boldness for Chinese killer loans knowing very well that it cannot be paid back within the agreed time frame.

 

 

Aside Tanzania, there have been several other resistances to Chinese backed contracts in Africa. The cancellation of a USD2 billion coal plant contract in Kenya, among few others, are typical examples of the growing awareness. Additionally, the Julius Maada Bio lead administration in Sierra Leone equally suspended a $400 million airport construction agreement in 2018.