How djibouti like zambia is about to loose its port to china apc times university dc

On march 2018, djibouti signed a partnership agreement with a singaporean company that works with china merchants port holdings co. Or cmport—the same state-owned corporation that gained control of the hambantota port in sri lanka—to build the doraleh multipurpose port.

Beijing’s cumulative loans to africa since 2000 amounted to $124-billion by 2016, according to figures compiled by the china-africa research initiative (CARI) at johns hopkins university school of advanced international studies in the united states.

Angola, ethiopia, sudan, kenya and the democratic republic of congo respectively, were the top beneficiaries of these loans. American university football angola’s oil-related loans worth $21.2 billion since 2000 total roughly a quarter of cumulative chinese loans to the entire continent.

While african presidents are at least this time round somehow exempted from the indignity of being talked down while clutching their begging bowls at western capitals before a few notes is thrown into their bowls, the readily available chinese loans are not entirely risk free.

Economists and other international financial institutions are becoming increasingly worried that the east asian giant under a careful disguised “debt trap” diplomacy is burying many developing and poor countries in massive debt and then forcing the highly indebted countries to hand over some of their key infrastructures’ such as the case of sri lanka.

Sri lanka racked up more than $8 billion worth of debt to chinese sovereign-backed banks at interest rates as high as 7 percent reaching a level too high to service. Is american university a good school with nearly all its revenue going toward debt repayment, in 2017 after being pushed to the wall, sri lanka threw in the towel and handed over the chinese-built port at hambantota under a 99-year lease with china having a 70 percent stake.

On march 2018, djibouti signed a partnership agreement with a singaporean company that works with china merchants port holdings co. Or cmport—the same state-owned corporation that gained control of the hambantota port in sri lanka—to build the doraleh multipurpose port.

The port is significant not only because it sits next to china’s only overseas military base but also because it is the main access point for american, french, italian and japanese bases in djibouti and is used — because of its strategic location — by parts of the U.S. Military that operate in africa, the middle east and beyond.

In a letter to national security advisor john bolton in may, sen. American unis james inhofe (R-okla.) and sen. Martin heinrich (D-N.M.), two members of the senate armed service committee, wrote that djibouti’s president guelleh seems willing to “sell his country to the highest bidder,” undermining U.S. Military interests.

djibouti’s now identified as one of those countries that are at high risk of debt distress. Amrcan so, that should be sending off all sorts of alarm bells for djiboutians as well as for the countries that really rely on djibouti, such as the united states,” said joshua meservey, a senior policy analyst at the heritage foundation.