Well, it is the way the cookie crumbles.
DP WORLD is broke and needs the cooperation of extremely venal sub saharan politicians to bail it out with these IGAs, which essentially has given the DP WORLD a new lease of commercial relief. Armed to teeth with these IGAs, DP WORLD can pay a courtesy visit to Western lenders and secure more extortionate loans. Otherwise, DP WORLD was looking forward to declaring bankruptcy, but that call is only deferred for now as we shall dilate here.
Survival in this business jungle calls for more borrowing at exorbitant rates since the interest rate regime has skyrocketed in an elusive attempt to lean in on runaway inflation. Honouring loan repayment, particularly outsized interest rates, is the DP WORLD well kept secret. The gospel truth needs revelation: DP WORLD corporate plan falls apart because of the onerous debt payment obligations beyond their means.
Lending huge amounts of cash is unavoidable to anchor new expansionist regimes across sub-Saharan Africa to extend port operation services that may require significant concessions that will erode on revenue sources and associated profits.
Without profits, it means someone has to pick up the rotten end of the stick. The western banks bankrolling DP WORLD will not take any losses, and DP WORLD will shirk away leaving the bewildered host African countries who are at the end of the conveyor belt finding themselves tied to IGAs which are generating losses, and they cannot extricate themselves from this latest slavery without attracting huge penalties of contract termination.
Part of the challenge DP WORLD will have to confront is how either to absorb or eliminate local fiefdom that have already tasted easy money from running dry land ports. These political influence peddlers may make or break DP WORLD ironclad hold on this port operations.
Cooperating with the well politically connected fiefdom means sharing of the meager profits that will strangle DP WORLD and that will be very bad tidings to the Exchequer who is eagerly awaiting to report to the Parliament that the biggest political gamble since independence has worked but regrettably he will have to divulge it had backfired.
Refusal to "pay to play" DP WORLD will find themselves losing political influence to their own detriment. Either way, we see no future for the money guzzling DP WORLD and to those who promoted it as that silver bullet, which is anything else but that!
When everything is looped into the equation, DP WORLD basic problems will not vanish away because they have these IGAs across sub-Saharan Africa knowing debt servicing is well beyond the money generated by these anemic operations ensnaring her even into a more debt trap. The reality will sink in to balance the books these satellite African nations, including empty-headed TZ, ought to absorb the losses. No money will pass hands, making TPA look like the mighty Archangel we barely knew and appreciated despite the enormous challenges it endured that excludes not political interference.
This is where the habitual lies of turning our ports into money minting machines will come into a cropper, and no amount of lies will cool the anger of the populace. Like all alien investments in this country that have floundered, DP WORLD will be no exception, and our politicians will have no place to hide just like a golden fish.
This will be a bitter medicine to swallow because the IGAs protect the investor under any circumstances, including fleecing the host nation on the very broad daylight. The clock is now quietly ticking....
Then, someone in the government will be compelled to be a fall guy, as the expected revenues fall short of ballooned figures. In fact, we anticipate the first three years DP WORLD cash to the Treasury will be less than what TPA sends!
Next year, they will claim they are still resolving teething issues following the handover, but the second year excuses will be difficult to justify when not a penny is paid to the Treasury. DP WORLD will later ask for government subsidy and bank guarantee for new loans to bankrolling other petty projects elsewhere [emoji2] [emoji3] [emoji1] [emoji16] [emoji1787] [emoji1787] [emoji23]
Who will be our FALL GUY?
We project the DP WORLD saga gonna be the biggest DECEPTION since we gained independence.
We are selling our gems to a company running colossal losses, hugely indebted, and the debts will mount to over $50 bill within the next five years to accommodate the largest port expansion operations in global history.
Just remember, DP WORLD is broke and borrows money from the western banks to make ends meet. The question for how long before this house of cards comes down tumbling? We suspect it may take two to three years from now before our dumb politicians learn how to spell "OUCH" the hard way.
WHAT IS THE REAL PROBLEM OF DP WORLD?
The massive debt, which can not be repaid and has been restructured a couple of times, is now slapped with hiked interest rates. The failure of meeting financial obligations makes DP WORLD a very unreliable as the mega infrastructure international investor of the magnitude envisioned globally.
We are now in a position to make our own considered projection.
DP WORLD is going to turn out as the biggest ponzi scheme since Bernie Madoff: the monster of Wall Street. It is a house of cards that will fall with a domino impact, leaving sub-saharan countries sinking deeper into external debt that may lead at disposing our natural resources to plug the gaping holes into our national budgets
What our scatterbrained politicians do not know the shares they were bribed with are duds, and they will never be able to cash in on them because western banks must collect their interest payments before anybody else thereafter there will be nothing for them to pick up.
In fact, the duds they cling to dearly are worthless than toilet paper, which at least you know you can wipe your ass with. [emoji2] [emoji3] [emoji1] [emoji16] [emoji1787] [emoji23] [emoji2] [emoji3] [emoji1] [emoji16] [emoji1787] [emoji23] [emoji2]
This is God's will that His enemies amass wealth to hand over to the guiltless. It is God's doing, and it is wonderful in our eyes, says the Lord God of Jacob.