The South China Morning Post published on 20 February 2020 an article titled "Chinese Lenders Turn Off the Taps on International Energy Projects as 'Debt Trap Diplomacy' Criticisms Mount" by Jevans Nyabiage.
The article concludes that concern is growing both in China and abroad about the sustainability of its lending practices.
Showing posts with label Export-Import Bank of China. Show all posts
Showing posts with label Export-Import Bank of China. Show all posts
Thursday, February 20, 2020
Tuesday, March 26, 2019
Ethiopia, China and Debt
The South China Morning Post published on 24 March 2019 an article titled "Ethiopia in Talks with China to Ease 'Serious Debt Pressure' Tied to New Silk Road Rail Link, Envoy Says" by Laura Zhou.
Ethiopia has a combination of interest-free, commercial and concessional loans from China totaling more than $12 billion. Ethiopia's ambassador to China recently stated that the two governments are in discussion to restructure the $2.9 billion loan for the railway between Addis Ababa and Djibouti "because it has put serious stress on our repaying capability." Ethiopia had previously extended the repayment period by 20 years. The Ethiopian ambassador denied that this is a "debt trap" situation.
Ethiopia has a combination of interest-free, commercial and concessional loans from China totaling more than $12 billion. Ethiopia's ambassador to China recently stated that the two governments are in discussion to restructure the $2.9 billion loan for the railway between Addis Ababa and Djibouti "because it has put serious stress on our repaying capability." Ethiopia had previously extended the repayment period by 20 years. The Ethiopian ambassador denied that this is a "debt trap" situation.
Monday, March 25, 2019
Kenya's Debt Repayment to China
Kenya's Business Daily published on 19 March 2019 an article titled "Kenya's Debt Repayment to China, India Increases" by Constant Munda.
China received more than a fifth of Kenya's total external debt servicing during the six month period that ended in December 2018. External debt servicing includes repayments to individual countries, private commercial banks, and international financial institutions. During this period, China received 61 per cent of Kenya's debt servicing to individual countries. Kenya's debt to China reached $6.2 billion in December 2018. The deal by the Export-Import Bank of China to fund 90 percent of the $3.6 billion Mombasa-Nairobi standard gauge railway saw Beijing overtake Tokyo as Kenya's largest bilateral lender.
China received more than a fifth of Kenya's total external debt servicing during the six month period that ended in December 2018. External debt servicing includes repayments to individual countries, private commercial banks, and international financial institutions. During this period, China received 61 per cent of Kenya's debt servicing to individual countries. Kenya's debt to China reached $6.2 billion in December 2018. The deal by the Export-Import Bank of China to fund 90 percent of the $3.6 billion Mombasa-Nairobi standard gauge railway saw Beijing overtake Tokyo as Kenya's largest bilateral lender.
Monday, February 4, 2019
Chinese-built and Financed Addis Ababa Airport Is Largest in Africa
South Africa's Business Insider published on 31 January 2019 an article titled "Inside the Brand-new Biggest Airport in Africa, Which Also Features the Largest Chinese Restaurant on the Continent" by George Tubei.
Xinhua posted on 30 January 2019 an article titled "Ethiopian Airlines' Latest Chinese-built Infrastructure To Power Continental Ambition" by Michael Tewelde.
The Export-Import Bank of China financed the $363 million airport expansion project, which was built by China Communications Construction Company. Not only is the airport the largest in Africa but Ethiopian Airlines passed South African Airways last year as the largest African carrier.
Xinhua posted on 30 January 2019 an article titled "Ethiopian Airlines' Latest Chinese-built Infrastructure To Power Continental Ambition" by Michael Tewelde.
The Export-Import Bank of China financed the $363 million airport expansion project, which was built by China Communications Construction Company. Not only is the airport the largest in Africa but Ethiopian Airlines passed South African Airways last year as the largest African carrier.
Wednesday, January 30, 2019
Chinese Transportation Projects in Ethiopia
The Diplomat published on 26 January 2019 an analysis titled "Revisiting Chinese Transportation Projects in Ethiopia" by Istvan Tarrosy, Hungarian Academy of Sciences, and Zoltan Voros, University of Pecs.
The authors revisited the Chinese financed and built light rail system in Addis Ababa and the railway between Addis Ababa and Djibouti. They questioned how Ethiopia can make either project profitable and asked what happens if Ethiopia fails to repay the loans provided by China. Neither the light railway nor the Addis Ababa-Djibouti railway will be able to generate the desired income, although the railway may help increase trade as the freight trains come on line. China has already extended the debt repayment period from 10 to 30 years, probably because Ethiopia failed to start paying back the loans. The authors concluded that the debt is a worrisome issue for Ethiopia.
The authors revisited the Chinese financed and built light rail system in Addis Ababa and the railway between Addis Ababa and Djibouti. They questioned how Ethiopia can make either project profitable and asked what happens if Ethiopia fails to repay the loans provided by China. Neither the light railway nor the Addis Ababa-Djibouti railway will be able to generate the desired income, although the railway may help increase trade as the freight trains come on line. China has already extended the debt repayment period from 10 to 30 years, probably because Ethiopia failed to start paying back the loans. The authors concluded that the debt is a worrisome issue for Ethiopia.
Wednesday, January 16, 2019
Kenya Railway Loan Terms with China under Fire
Kenya's Daily Nation published on 13 January 2013 a story titled "SGR Pact with China a Risk to Kenyan Sovereignty, Assets" by Edwin Okoth.
The 2014 contract between Kenya and China's state-owned Export-Import Bank for funding construction of the Nairobi to Mombasa railway has become public and contains worrisome terms for Kenya. Failure to repay the loan could result in China taking control of the port of Mombasa or other Kenyan properties from airports to natural resources. The contract also states that its terms are governed by and construed in accordance with the laws of China. The goal was to keep the contract secret. China has strongly denied that the contract is an example of debt-trap diplomacy.
The 2014 contract between Kenya and China's state-owned Export-Import Bank for funding construction of the Nairobi to Mombasa railway has become public and contains worrisome terms for Kenya. Failure to repay the loan could result in China taking control of the port of Mombasa or other Kenyan properties from airports to natural resources. The contract also states that its terms are governed by and construed in accordance with the laws of China. The goal was to keep the contract secret. China has strongly denied that the contract is an example of debt-trap diplomacy.
Wednesday, March 14, 2018
China's Energy Financing in Africa
The Global Development Policy Center at Boston University maintains a database called "China's Global Energy Finance," which tracks since 2000 Chinese financing by the China Development Bank and the Export-Import Bank of China to foreign governments in the energy sector.
As of 2017, it tracked $34.8 billion in China's energy finance for Africa out of a global total of $225.8 billion. Latin America received almost twice as much energy financing as Africa and Russia received more than all of Africa combined. The major recipients in Africa have been Angola, Nigeria, and Zambia.
As of 2017, it tracked $34.8 billion in China's energy finance for Africa out of a global total of $225.8 billion. Latin America received almost twice as much energy financing as Africa and Russia received more than all of Africa combined. The major recipients in Africa have been Angola, Nigeria, and Zambia.
Friday, September 1, 2017
Chinese Railway Construction in East Africa
Brookings published on 6 July 2017 an article titled "China and the East Africa Railways: Beyond Full Industry Chain Export" by Yun Sun.
The author analyzes the construction of two standard gauge railroads--one from Mombasa to Nairobi in Kenya and the other from Djibouti to Addis Ababa--by Chinese construction companies and largely financed by loans from the Export-Import Bank of China.
The author analyzes the construction of two standard gauge railroads--one from Mombasa to Nairobi in Kenya and the other from Djibouti to Addis Ababa--by Chinese construction companies and largely financed by loans from the Export-Import Bank of China.
Tuesday, April 4, 2017
China's Development Finance in the Global Energy Sector
The Global Economic Governance Initiative (GEGI) at Boston University published a paper in 2016 titled "Fueling Growth and Financing Risk: The Benefits and Risks of China's Development Finance in the Global Energy Sector" by Kevin P. Gallagher, Rohini Kamal, Yongzhong Wang, and Yanning Chen.
The paper provides estimates of China's global developmental finance institutions and its policy bank lending to foreign governments for energy. China is poised to be the largest development lender in the world as Western-backed multilateral development banks appear stalled in their ability to increase their capital bases. While the study looks a China's global energy financing, it contains useful information about energy financing in Africa. Six African countries--Ethiopia, Niger, Sudan, Ghana, Zambia, and Tanzania--are among the 20 top global recipients of Chinese energy finance. Most of the global financing has gone into power generation (80 percent), transmission and distribution (13 percent), and extraction and refining (7 percent). In the case of power generation, 66 percent financed projects in the coal sector, 27 percent hydropower, and the remainder in oil, gas, and wind.
This paper is part of the GEGI interactive database on China's Global Energy Finance.
The paper provides estimates of China's global developmental finance institutions and its policy bank lending to foreign governments for energy. China is poised to be the largest development lender in the world as Western-backed multilateral development banks appear stalled in their ability to increase their capital bases. While the study looks a China's global energy financing, it contains useful information about energy financing in Africa. Six African countries--Ethiopia, Niger, Sudan, Ghana, Zambia, and Tanzania--are among the 20 top global recipients of Chinese energy finance. Most of the global financing has gone into power generation (80 percent), transmission and distribution (13 percent), and extraction and refining (7 percent). In the case of power generation, 66 percent financed projects in the coal sector, 27 percent hydropower, and the remainder in oil, gas, and wind.
This paper is part of the GEGI interactive database on China's Global Energy Finance.
Thursday, February 23, 2017
Chinese Loans to Africa 2000 to 2014
The China Africa Research Initiative at Johns Hopkins University recently published working paper number 4 dated April 2016 titled "Eastern Promises: New Data on Chinese Loans in Africa, 2000 to 2014" by Deborah Brautigam and Jyhjong Hwang.
The paper provides an overview of a new data base on Chinese loans, the scale of the loans, their African recipients and the sectors where borrowers are investing. The study concludes that Chinese financiers loaned about $86 billion to African governments and state-owned enterprises between 2000 and 2014.
The paper provides an overview of a new data base on Chinese loans, the scale of the loans, their African recipients and the sectors where borrowers are investing. The study concludes that Chinese financiers loaned about $86 billion to African governments and state-owned enterprises between 2000 and 2014.
Tuesday, October 25, 2016
China's Involvement in Cameroon's Hydropower Sector
The China-Africa Research Initiative at Johns Hopkins School of Advanced International Studies published in August 2016 a study titled "Capturing The Rains: A Comparative Study of Chinese Involvement in Cameroon's Hydropower Sector" by Yunnan Chen and David G. Landry.
The paper compares two partially-complete hydropower projects in Cameroon financed and constructed in the last five years: one financed by China Eximbank, the other financed by a multilateral consortium led by the World Bank. The dams are being constructed by two Chinese state owned enterprises: Sinohydro and China Water and Electricity.
The paper compares two partially-complete hydropower projects in Cameroon financed and constructed in the last five years: one financed by China Eximbank, the other financed by a multilateral consortium led by the World Bank. The dams are being constructed by two Chinese state owned enterprises: Sinohydro and China Water and Electricity.
Thursday, June 23, 2016
Is China Building Africa?
The European Financial Review published on 22 June 2016 an article titled "Is China Building Africa?" by Zhengli Huang, an architect and urbanist, and Xiangming Chen, dean and director of the Center for Urban and Global Studies at Trinity College in Connecticut.
The authors argue that Chinese state-owned enterprises are generally misconceived as political allies with the central government, while their corporative nature with a profit orientation and financial constraints are largely overlooked. China is building the majority of infrastructure projects in Africa, but the financing of these projects often comes from sources other than Chinese banks and companies.
The authors argue that Chinese state-owned enterprises are generally misconceived as political allies with the central government, while their corporative nature with a profit orientation and financial constraints are largely overlooked. China is building the majority of infrastructure projects in Africa, but the financing of these projects often comes from sources other than Chinese banks and companies.
Friday, April 22, 2016
China's Loans to Africa
The SAIS China-Africa Research Initiative published in April 2016 a policy brief titled "How Chinese Money Is Transforming Africa: It's Not What you Think" by Jyhjong Hwang, Deborah Brautigam, and Janet Eom.
From 2000 to 2014, the Chinese government, banks, and contractors extended about $87 billion in loans to African governments and SOEs. The China Export-Import Bank and China Development Bank provided most of the loans. Only 56 percent of the loans actually materialized and are being used. The rest turned out to be mistakes, hopes, rumors, cancelled or real loans but not from China. The top recipients were Angola (23 percent), Ethiopia (14 percent), Sudan and Kenya (6 percent each), and the DRC (5 percent).
From 2000 to 2014, the Chinese government, banks, and contractors extended about $87 billion in loans to African governments and SOEs. The China Export-Import Bank and China Development Bank provided most of the loans. Only 56 percent of the loans actually materialized and are being used. The rest turned out to be mistakes, hopes, rumors, cancelled or real loans but not from China. The top recipients were Angola (23 percent), Ethiopia (14 percent), Sudan and Kenya (6 percent each), and the DRC (5 percent).
Monday, February 8, 2016
Launch of China-Africa Industrial Cooperation Fund
CCTV ran a story on 4 February 2016 titled "China Launches Industrial Cooperation Fund to Assist Africa's Development" by Miroslav Atanasov. The article reports the launch of the $10 billion China-Africa Industrial Cooperation Fund designed to increase China's investment in manufacturing, agriculture, hi-tech, energy, minerals, technology, infrastructure, and finance in Africa.
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