Africa's economic game changer
SEE ALSO :Public rants ought not to stall economyTrade practices Whether the two countries are right in their prognosis or not, the inescapable reality is that they both expect to ride on the Africans’ back much as Europe and America did before them - through slave trade, colonialism and, later, unfair trade practices. The targeting of Africa as part of China’s Belt and Road initiative should raise more eyebrows. This is borne out of the realisation that the initiative can tie African countries in an impoverishing relationship with China for decades. China’s largesse is directed at countries that either have proven oil and valuable mineral resources or have a high probability they will be found. It should be noted that the Asian nation often offers to finance and carry out oil and minerals exploration and surveys. Of concern are the terms under which it is financing the construction of road and rail networks.
SEE ALSO :Banking boosts Kenya’s economyThe lender is said to demand the right to take over the running of valuable State assets in the event of default. Yet the road and rail networks are aimed at making Chinese firms penetrate Africa’s hinterland and ferry out raw materials to fuel its economy. Leaders need to scrutinise contracts they enter with the Asian countries.
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