Monday 23 July 2018

Djibouti risks dependence on Chinese largesse

Who is in the driver’s seat?

DJIBOUTI was the last of Europe’s African colonies. France clung to this sliver of Red Sea coast until 1977; even today it occasionally resembles occupied territory. In the black lava desert stands a hilltop garrison of the Foreign Legion. French tanks trundle along the narrow road to Ethiopia. This whiff of colonialism helps explain why many Djiboutians fret about their independence.

China is the country’s biggest investor. It plans to remake Djibouti as a staging post on President Xi Jinping’s flagship Belt and Road Initiative. In the past two years Beijing has lent Djibouti some $1.4bn, more than 75% of its GDP. In 2015 the country was Africa’s fifth-biggest recipient of Chinese credit, despite having barely 1m citizens, one of the continent’s smallest populations.

Djibouti’s experience shows how Chinese cash can transform even the smallest country. “None of this would have been possible without...Continue reading

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