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One African Nation Put the Brakes on Chinese Debt. But Not for Long. (The New York Times)

November 23, 2018

By Dionne Searcey and Jaime Yaya Berry 

From the article: 

DAKAR, Senegal — The new international airport in Sierra Leone was supposed to be a shiny welcome center for travelers — a symbol showing that after a devastating civil war and an Ebola epidemic, the nation was finally open for business.

But last month, the government decided that the multimillion-dollar price tag was too high, so it canceled the financing that made construction possible: a more than $300 million loan from China that Sierra Leone might have struggled to repay. 

... 

The monetary fund has flagged Djibouti, site of a large Chinese military base with live-fire exercises in the desert, as having potential problems with mounting debt, most of which is owed to the Chinese government’s Export-Import Bank, according to a report this year from the Center for Global Development. Yet Djibouti shows no signs of limiting new borrowing for projects, and it’s unclear whether these will earn enough revenue to pay off their debts. 

Read the full article here.

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Senior Fellow, Director of the US Development Policy Initiative