China To Take Over Kenya’s Largest Port Over Unpaid Chinese Loan

China To Take Over Kenya’s Largest Port Over Unpaid Chinese Loan, by Tyler Durden.

After years of “benevolent” handouts to various African countries by Beijing, all of which however came in the form of loans, of which few have led to viable, long-term projects and cash-flow generating assets, and led to accusations that China is pursuing a “new colonialism” of the African continent (and more recently, nations along the One Belt, One Road corridor), China is demonstrating to the world what happens when its debtors refuse to pay up. …

China is likely to take over Kenya’s lucrative Mombassa port if Kenya Railways Corporation defaults on its loan from the Exim Bank of China. …

Implications would be grave, including the thousands of port workers who would be forced to work under the Chinese lenders. … A Chinese-funded project in Africa is about to be confiscated by China, which will appoint Chinese management, upstream all revenues to China (and, eventually, profits after enough fat is trimmed), and provide China with its own strategist port in east Africa. …

A brilliant “investment” scheme? Why yes, and it won’t be the first time China has used it: in December 2017, the Sri Lankan government lost its Hambantota port to China for a lease period of 99 years after failing to show commitment in the payment of billions of dollars in loans. The transfer, according to the New York Times, gave China control of the territory just a few hundred miles off the shores of rival India.

Reader Bob:

The big question is whether they will follow up militarily if they are not allowed to take control of the pledged assets. Well worth watching, including their copper and railroad assets in the DRC.