Browsing: Africa

Kenya will be keen to secure a Ksh370 billion (US$3.67 billion) loan from China for the Standard Gauge Railway (SGR) as the World meets for the second Belt and Road Forum for International Cooperation (BRF) in Beijing this week. President Uhuru Kenyatta and former Prime Minister Raila Odinga are expected to lead a delegation from Kenya to the Beijing meeting. If secured, It will push up Kenya’s debt obligation to China to above US$9.8 billion (Ksh991.2 billion), after loans from Beijing closed 2018 at US$6.2 billion (Sh627.1 billion).

Is China setting a debt trap on Kenya?

Kenya

Loans from China hit a high of US$6.2 billion last year

The Chinese government has dismissed claims that it’s continued heavy lending to Kenya in the financing of mega infrastructure projects is a ‘ debt trap’, even as loans from Beijing hit a high of ShUS$6.2 billion(Sh625.9 billion) in December last year.

This is up from US$5.3 billion (Sh535 billion) a year earlier with a lion share going towards the construction of the multi-billion Standard Gauge Railway (SGR).

“We are not putting Kenya into a debt trap. China-Africa corporation cannot put Africa into a trap but booming economic growth,” China’s Charge’ D’affaires (Nairobi) LI Xuhang said during a meeting in Nairobi on the update on the SGR and China-Kenya relations.

“Kenya can decide on who they want to partner with. Kenyan people are wise enough to choose their trade and corporation partners. They can decide who benefits them more,” Xuhang …

NAS launch cargo services - The Exchange www.exchange.co.tz

National Aviation Services to launch cargo services in Mozambique

Countries

Emerging markets aviation services provider National Aviation Services says it will offer comprehensive ground handling and cargo services in Mozambique from July.

This will cover ramp, passenger and engineering services and include check-in, boarding, ramp handling, maintenance, cleaning as well as import and export cargo handling and storage for scheduled and ad-hoc airlines at all airports in Mozambique.

“Airline traffic is growing steadily in Mozambique. Coupled with the developing oil and gas, and mining sectors, there is a huge demand for air transport related goods and services for both cargo and passenger operations,” group CEO Hassan El Houry said in a statement.

“This requires heavy investment in the latest equipment, technologies and processes at the different airports in Mozambique, all of which NAS can provide easily. We look forward to utilizing our global experience and expertise to modernize operations and drive efficiency using the latest technologies and operational practices.”

NAS …

Sub-Saharan Africa’s economic outlook remains bleak amid an elusive growth recovery, World Bank now says.

African economies suffer effects of global economic crisis

Africa's Development

Three years past the crisis period, economies are still performing poorly

The growth story in Sub-Saharan Africa in the past few years has been one of faltering recovery from the worst economic crisis of the past two decades.

This remains the case according to the World Bank’s April 2019, 19th edition of Africa’s Pulse, which estimates GDP growth in 2018 at a lower-than-expected 2.3 per cent, with a forecast to 2.8 per cent in 2019.

“Three years past the crisis period, we should be seeing a more widespread pickup in growth; instead we have downgraded our estimates again for 2018,” said Gerard Kambou, World Bank Senior Economist for Africa, “Leaders in Sub-Saharan Africa have the opportunity to build stronger domestic policies to withstand global volatility – and now is the time to act.”

The report notes that the three largest African economies—Nigeria, Angola and South Africa—play a big role …