Japan to fund only high-impact projects in Africa to save it from impending crisis

The Jica-funded berth expansion at the port of Mombasa in 2015. FILE PHOTO | NMG

Japan has said that it will henceforth assess the economic viability of projects as well as debt sustainability of African countries before granting them loans as it pushes for high-impact projects that can generate enough income for loan repayments.

Tokyo’s stance, announced last week, comes amid growing concern over loan repayment defaulting by some African countries that have borrowed heavily, particularly from China.