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

What you need to know:

  • Uganda joins a growing list of African countries that have binged on Chinese debt only to realise later that they cannot sustain repayment without further borrowing or convincing the lenders to restructure the loans.

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.

Welcome!

You're all set to enjoy unlimited Prime content.