Tanzanian president says Chinese loans are only for ‘mad’ people
Tanzanian President John, Pombe Magufuli has opposed a KSh 1 trillion loan from a Chinese company over tough conditions imposed on them by the investor.
In 2013, Tanzania signed a framework agreement with China Merchants Holdings International, China’s largest port operator, to build a port in Bagamoyo and a special economic zone to transform the country into a regional trade and transport hub.
The deal was signed by Magufuli’s predecessor Jakaya Kikwete during a visit of Chinese President Xi Jinping to the country. It was also financially backed by Oman’s State General Reserve Fund.
The groundbreaking of the project took place in 2015, but, Magufuli’s government set to renegotiate the terms and conditions with the investors. In May 2019, Tanzania MPs raised questions on the stalled project with many accusing the government of sabotaging development programmes in the country.
However, the Head of State responded to the MPs saying the conditions that were given by the financier were too tough and amounted to selling their country to China.
“Those investors are coming with tough conditions that can only be accepted by mad people. The investor told us once they build the port, there should be no any other port to be constructed all the way from Tanga to Mtwara south,” said Magufuli.
He said the investor company wanted the government not to collect revenue from Bagamoyo once its construct the port