China wants its money back


Briefly: Hackers based in China targeted the Kenyan government in a years-long attempt to access data about the country’s debt, according to a Reuters report. China has denied involvement.

For the last couple of decades, Kenya has borrowed from China and others to fund major infrastructure projects like highways and railroads. But those projects haven’t boosted revenue enough to cover loan repayments.

Intrigue’s take: Several African governments struggling to meet repayments might be forced to cut back on essential investments to keep servicing their debt.

For its part, Kenya has taken extraordinary measures to pay back its debts, even temporarily suspending salaries for ministers, legislators, and civil servants.

And China seems to be taking extraordinary measures to enforce those debts. The reported hacking of Kenya’s government suggests real anxiety in Beijing that much of the $80B in outstanding debt across the continent may not be repaid.

Also worth noting:

  • Governments across Africa now spend around 17% of their revenues to service debt, with China the single largest bilateral lender.
  • Last month, Kenya’s top economic advisor tweeted, “Salaries or default? Take your pick”.
  • The IMF announced this week it’s agreed a $1B loan to Kenya. The IMF and China agreed to restructure Ghana’s debt earlier this month.
Latest Author Articles
Election Intrigue – What is Kamala Harris’s foreign policy?

Vice President Kamala Harris has been the Democratic Party’s presumptive nominee for a whopping… checks notes… five days. We weren’t alive in 1968 when President Lyndon Johnson chose not to run again, but from the accounts of those closest to Johnson, it was a more orderly process.

26 July, 2024
Five geopolitical vibes at the Paris Olympics

As 10,500 athletes from 200 countries and regions head to Paris for the 2024 Summer Olympics, the organisers really really want the world’s largest sporting event to be free of politics and geopolitics.

23 July, 2024
The six top lines from China’s ‘Third Plenum’

It’s been a summit-packed week. Between America’s GOP program in Milwaukee, the Brits cosying up to Europe at Blenheim Palace, and Japan hosting 18 Pacific Islands in Tokyo, China’s own Third Plenum almost took a backseat. Almost.

19 July, 2024
Mohammed Deif: dead or alive?

You might’ve noticed an Israeli Defence Force (IDF) tweet on Saturday regarding an airstrike on a “compound” in southern Gaza, where it said “two senior Hamas terrorists and additional terrorists hid among civilians”.

16 July, 2024