China’s controversial charity to African countries is beginning to backfire with Uganda being the second scape goat after Zimbabwe.
Uganda Government risks losing one of its international airport due to its inability to repay a Chinese $207m loan secured from Export-Import Bank of China in 2015.
The Uganda Civil Aviation Authority (UCAA) reportedly used its Entebbe International Airport and other assets as collateral for such loans, according to local media outlet, Daily Monitor.
Nigeria is among China’s biggest debtor in Africa with a total of $3.48bn bilateral loan borrowed from Exim Bank of China, according to the Debt Management Office.
Apart from the $3.48bn, the FG is also planning to borrow from the Asian giant to fund 2022 budget.
Some of the projects under which the monies were borrowed are the building of terminals at the five major airports valued $500m at 2.5 per cent interest.
The airports are the Murtala Muhammed International Airport, Lagos, Nnamdi Azikiwe International Airport, Abuja, Port Harcourt International Airport, Mallam Aminu Kano International Airport, Kano and the Akanu Ibiam International Airport, Enugu. The MoU for the $500m was signed in Beijing, while the project was constructed by China Civil Engineering Construction Corporation (CCECC).Nigeria’s rail way system are under the mercy of China as a default could hand China right to administer Nigeria’s railways.
The Abuja urban railway system that was commissioned in 2017 was a product of $500m loan taken from China, while on the Abuja-Kaduna Rail System, the country is owing China $500m.
The Lagos-Ibadan rail way project, according to Nigeria’s Transport Minister had a loan of $1.5bn.