China loan binge starts to bite; the US, EU hope to gain from fallout
Passengers arriving on international flights after being screened and cleared for symptoms of Covid-19 at Entebbe Airport in March 2020. The virus marched well beyond China’s borders, spreading worldwide. FILE PHOTO | AFP
China’s ambitious Silk Road project, from which African states have gained immensely by obtaining commercial loans for infrastructure development, has returned to haunt some of the beneficiaries who are now facing debt distress, exacerbated by the coronavirus pandemic.
Uganda, for instance, was this week fighting off allegations that its international airport, Entebbe, risked being taken over by Beijing over a $200 million loan taken six years ago in what is being seen as “toxic” clauses in the contract.
