$30 BILLION DOLLARS LOAN TO BE REPAID IN 30 YEARS AND UNINTERRUPTED 99 YEARS LEASE MAGUFULI REJECTED THE DEAL SAYING THAT ONLY A DRUNKARD CAN ACCEPT SUCH.
Head of State pombe Magufuli passed away on 17 March 2021.He was loved and hated in Equal measure for his dictatorial approach and tough stance.
one thing which can be remembered about him is how rejected a Chinese loan offer unlike other African leaders.
Almost 40% of sub-Saharan African countries are in danger of slipping into a major debt crisis” according to the Overseas Development Institute, ahead of a major conference on debt being held in London this week.
And the relationship between African nations and China is often seen as a significant part of the problem.
Its critics say that major infrastructure projects carried out by Chinese companies in Africa are too expensive, and burden the host countries with enormous debts they can’t hope to repay.
Magufuli decided to cancel the loan worth $30 billion offered by China in 2020. Magufuli said that “only a drunkard will accept the terms” of agreement in this loan.
The loan in question was signed by Magufuli’s predecessor Jakaya Kikwete to construct a port at Mbegani creek in Bagamoyo.
According to local media reports, Jakaya Kikwete had signed the loan agreement with Chinese investors to build the port on condition that they would get 30 years to guarantee on the loan and 99 years uninterrupted lease.
Labelling the agreement as “killer Chinese loan”, many African organisations and citizens had demanded the then President to reject the offer. They had wanted the president of “dire consequences” because of this deal, but their concerns were ignored and the deal was signed.
The Chinese government is adamant that its economic relationships with African countries are mutually beneficial and rejects suggestions that it is using debt to expand global influence.
China the largest single creditor nation, with combined state and commercial loans estimated to have been $132bn (£100bn) between 2006 and 2017.
CIC PRESS TEAM