However, the new proposal could prove to be a poisoned chalice as it could mire African countries in more debt. “I am happy that the HKMC is now considering a new line of business of buying infrastructure loans for the purpose of securitisation. Rwanda, Burundi and South Sudan owe $289 million, $99 million and $182 million respectively. This new development comes at a time when China’s main project insurer, China Export and Credit Insurance Corporation, known as Sinosure, cast doubt on the viability of some infrastructure projects. Last week, Wang Wen, the chief economist for Sinosure, said that the planning behind many of China’s major infrastructure projects abroad has been “downright inadequate,” leading to huge financial losses.

Source: Daily Nation November 05, 2018 08:26 UTC