China to write off Ksh.740M Botswana loan after taking over Sri-Lanka port

China has agreed to extend a loan to Botswana for rail and infrastructure as well as writing off a BWP 80 million (Ksh.740million) debt.

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According to Botswana President Mokgweetsi Masisi, China also offered a 340 million pula grant.

The previous week, the Botswana ministry of finance was seeking a 1.2 billion loan for transport infrastructure.

China’s Xi offered another 80 billion in financing for Africa on Monday and wrote off some debt for poorer African nations , while warning against funds going to  toward “vanity projects”.

In December last year, Sri Lanka formally handed over Hambantota Port to China on a 99-year lease after struggling to pay loans from the Chinese nation.

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According to the New York Times, Sri Lanka politicians said the Hambantota deal valued at $1.1 billion, was necessary to chip away the debt estimated to be more than $8 billion.

Pundits had however warned against the move which they say put the country’s sovereignty in jeopardy.

“With this agreement,we have started to pay back the loans,” Prime Minister Ranil Wickremesinghe said in an address to parliament, the NY Times reported.

Report from Reuters and New York Times

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