China plans to sell off its African infrastructure debt to investors
The Addis Ababa- Djibouti freight train. The loan for the project which was meant to be paid over 10 years, has now been extended to 30 years. PHOTO | ZACHARIAS ABUBEKER | AFP
Regional governments could soon get access to more Chinese debt if a plan by a leading Chinese banking conglomerate to buy African infrastructure debts from the government starting next year, repackage them into securities and then sell them to investors, comes to fruition.
However, the new proposal could prove to be a poisoned chalice as it could mire African countries in more debt.
