China is thinking twice about lending to Africa

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China is thinking twice about lending to Africa
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African leaders are spooked at the conditions attached to Chinese debt, and the possible consequences of defaulting

days in May Uhuru Kenyatta, Kenya’s president, vanished from view. Kenyans feigned concern on Twitter, using the hashtag #FindPresidentUhuru. A missing-person poster appealed for information on the whereabouts of a five-foot-eight African male last seen in Beijing. A government spokeswoman sought to reassure the public: Mr Kenyatta had been in his office “meditating”.

Mr Kenyatta must have reckoned that his railway project, on which he has staked much political capital, was due another cut of Mr Xi’s cash. Not only has it been one of China’s highest-profile projects in Africa, but Beijing has already doled out $4.7bn to finance its first two sections. An almost 500km stretch between the port of Mombasa and the capital, Nairobi, is up and running. The second is nearly completed. Kenya had assumed that China would fork out the $3.

Nonetheless, African leaders are spooked. Dialogue with the Chinese is becoming edgier. On June 7th Mr Magufuli indefinitely suspended construction at Bagamoyo, balking at demands from the project’s Chinese partner for a 99-year lease and a ban on port development elsewhere in Tanzania. Moving smoothly from cheerleader to critic, he accused the firm of setting “tough conditions that can only be accepted by mad people”.

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