The first section of Kenya's Chinese-built railway was opened with much fanfare in 2017 - but two years later work on the tracks stopped in the middle of the country and the master plan of linking it to other landlocked countries in East Africa seems to have derailed.
There is no doubt the passenger side of the business is doing well and is fully booked, but it cannot pay back the loans on its own - and it was never meant to do so. He says the government would be exploring options for funding the construction of the remaining portion of the railway during the upcoming Belt and Road Summit in China.
Internal issues that have affected the Chinese economy have also led to hugely diminished funding, says Nigeria's former Deputy Central Bank Governor, Kingsley Moghalu. An admission that the government is seeking more funding may not sit well with many in the country who already reeling from tax hikes introduced by President William Ruto since he came into office a year ago.
The opacity in the deals countries like Kenya have signed with China is a matter of concern to their own citizens as well as critics abroad. However Uganda may decide to push its business towards Tanzania. Its railway project has cost way less to build and offers higher speeds as the line is electrified.
Source: Loan News Today (loannewstoday.net)
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SATodayNews - 🏆 44. / 51 Read more »
Source: allafrica - 🏆 1. / 99 Read more »
Source: allafrica - 🏆 1. / 99 Read more »
Source: allafrica - 🏆 1. / 99 Read more »
King Cetshwayo bridge demolition: List of 35-hour N2, M13 road closures, alternate routesYour ultimate guide to all the 35-hour road closures on Durban's N2 and M13 this weekend due to the King Cetshwayo bridge demolition
Source: TheCitizen_News - 🏆 6. / 75 Read more »
Source: ewnupdates - 🏆 30. / 53 Read more »