The economic benefits to Kenya were limited, since Chinese contractors did most of the construction work. The Dubai company has launched legal proceedings to challenge the takeover. Non-subscribers can read and sort comments but will not be able to engage with them in any way. (The government denies that China Merchants is the official operator of the port. Maybe they think they are attacking China, but they are disrespecting Africans. Ismail Omar Guelleh has been President since 1999, and his supporters have amended the constitution to allow him to extend his rule. “China is not seeking to colonize us, but they understand us and our point of need,” President Uhuru Kenyatta told local journalists.The Kenyan railway – like the similar Chinese-funded railway between Djibouti and Ethiopia – has been a publicity bonanza for Beijing, creating highly visible Chinese branding on the trains.The Kenyan railway is operated by a Chinese company, and Chinese workers have taken many of the top jobs as conductors, engineers, managers and drivers. Djibouti’s debt-defying stunt: Taking China’s money without accepting China’s control.

“Everything is forbidden or controlled,” he said.At the same time, the Chinese loans don’t offer much help for the majority of the population in impoverished countries. The Chinese loans have “resulted in debt distress, which poses significant risks,” the IMF said.A separate study by the Center for Global Development, a Washington-based think tank, estimated that China has provided nearly US$1.4-billion for Djibouti’s major projects, leading to a sharp increase in the country’s external debt.

“China should be more sensitive. Some analysts say the allegation of predatory behaviour is exaggerated, since China has often ended up cancelling the debts of poorer countries, and a majority of the debt in most African countries is still held by non-Chinese lenders.Djibouti, a tiny country of fewer than a million people on the Red Sea, is a prime example of the risks. The venture is supported by China Merchants.Djibouti has given China Merchants oversight of its Doraleh Multipurpose Port, which was financed and built by Chinese companies. Some information in it may no longer be current.Audio for this article is not available at this time. And the project left Kenya saddled with US$3.2-billion in debt to China. Earnings from services, including the provisions of ports services, exceed receipts from merchandise exports. This is a space where subscribers can engage with each other and Globe staff. The stations are filled with Chinese signs and Chinese pamphlets, and the Mombasa station even features a bronze statue of a Chinese hero, the explorer Zheng He, who led a maritime expedition to East Africa in the 15th century.Oct. Whether you need a hotel at Djibouti airport, Skyscanner compares all major hotel suppliers to find you the best prices of hotels in Djibouti.Need to get around? It has become a crucial hub in China’s Belt and Road Initiative (BRI): a multitrillion-dollar plan to build modern infrastructure to connect at least 68 countries to Chinese trade routes.John Bolton, national-security adviser to U.S. President Donald Trump, has alleged that the BRI is a predatory Chinese strategy, deliberately deploying “bribes, opaque agreements and the strategic use of debt” to hold African countries “captive to Beijing’s wishes.” The Trump administration has even produced YouTube videos attacking the BRI and urging countries to seek U.S. investment instead. “We need to bring global talent.”Others are more critical. That means:Comments that violate our community guidelines will be removed.© Copyright 2020 The Globe and Mail Inc. All rights reserved. They also reported that the loan agreement requires any disputes to be arbitrated in China.By 2019, the railway was continuing to lose money on each of its passenger and cargo trips, while Kenya’s loan repayments to China were sharply increasing.