Why Ugandan Importers Avoid Dar Port

So, going by your reasoning, countries such as Italy, Japan, France, US etc should be deemed bankrupt owing to their external debt levels relative to their gdps?
There is nothing wrong with countries obtaining these loans, as long as they are put into proper use- that of funding development projects that is aimed at stimulating economic growth and betterment of living standards of the given nation.

Tanzania esp under Kikwete was hankering for these loans, trouble was it was not creditworthy, having defaulted on $3bn loan, which had to be written off in 2006. Kenya on the other hand had positive loan repayment record, which made it very eligible for the loans.

Fyi, Tanzania has not borrow just $16bn. I have no idea what is your motive, reducing Tanzania's debt level by a staggering $9.2bn!

Regarding your statement about zero growth in the major sectors in the Kenyan economy....brother, u are such an incorrigible liar!

I will single out the tourism sector, which had pretty much flatlined in much of this decade. Havent u seen the latest reports on the sector? It is rebounding pretty well. It is on upward trajectory.

Even though the following Kenya's industries: banking, agriculture, manufacturing, construction, insurance, ICT, retail, media, marketing...etc etc may be facing hard times currently owing to a host of reasons; each of those industries are still many streets ahead of Tanzania's. Five top Kenyan banks for example boast of a combined net worth larger than the entire Tanzanian banking industry.
All those above- mentioned Kenyan industries are regularly ranked among the top perfoming in Africa.

Gunia wewe.
 
Before a handshake btn President of Eritrea and Prime Minister of Ethiopia. Now omit a link to Kenya and put up a link to Asmara.

Warming of Ethiopia-Eritrea relations puts proposed LAPSSET mega-project under microscope
26 SEPTEMBER 2018


Map of proposed LAPSSET mega-corridor in East Africa. Credit: Wikimedia Commons.
SUMMARY


  • Thawing of relations lessens Ethiopia’s potential need for proposed Kenyan port
  • Concerns remain about environmental and social impacts of mega-infrastructure project


The rationale for a proposed new East African mega-corridor development, the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, has been thrown into question by the renewing of diplomatic relations between Ethiopia and Eritrea. Local campaigners, civil society organisations and researchers had previously raised serious concerns about the environmental and social impacts of LAPSSET, which is partially funded by the World Bank.

LAPSSET describes itself as “Eastern Africa’s largest and most ambitious infrastructure project, bringing together Kenya, Ethiopia and South Sudan.” It consists of seven different infrastructure projects – including a controversial new deep-water port in Lamu, Kenya. Altogether LAPSSET is expected to cost around $25 billion, and, as summarised in a Julyprofile by online media outlet African Arguments, “involves building thousands of kilometres worth of highways, railways and oil pipelines,” to facilitate regional cross-border trade. The World Bank agreed to provide a $500 million loan to finance part of the proposed LAPSSET highway network through northern Kenya in 2017. However, a July report by Kenyan newspaper The Standard pointed out that the recent thawing of relations between Eritrea and land-locked Ethiopia could potentially render LAPSSET “obsolete”, as Ethiopia may gain access to Eritrea’s port in Asmara as a result of this seismic shift in regional geopolitics, thus lessening its potential demand for Lamu Port.

The Bank-financed highway that is part of LAPSSET runs through Turkana county in northern Kenya, between Lokichar and Nakodok (on the South Sudan border). The county is Kenya’s largest and poorest, with 79 per cent of people living below the national poverty line. Oil was discovered in Turkana county in 2012, with a planned 820km export pipeline linking Turkana county’s oil fields to Lamu Port forming a key aspect of LAPSSET. However, as noted byAfrican Arguments in July, “in Lokichar, the epicentre of Turkana’s oil industry, the boom has so far brought more frustration and conflict than hope. The British company Tullow Oil has opened the oil fields, but many are frustrated that this has not led to more jobs and benefits for those who have lived on the land for generations. Members of the herding community around the village of Nakukulas have barricaded roads in protest.” A 2017 reportby Oxfam International found that Tullow Oil had failed to achieve free, prior and informed consent (FPIC) from local communities in Turkana county affected by the oil fields. According to Oxfam International, Tullow receives financing from the International Finance Corporation (IFC, the Bank’s private investment arm) for its oil operations in Turkana county, and FPIC is required under IFC’s Performance Standards.

[LAPSSET] involves building thousands of kilometres worth of highways, railways and oil pipelines AFRICAN ARGUMENTS​

Concerns have also surrounded the development of Lamu Port, which could affectthe UNESCO World Heritage site at Lamu Old Town. Protests have also erupted against plans to build a coal-fired power plant in the vicinity of Lamu Port, with the African Development Bank considering providing finance for the project.

LAPSSET represents just one of many planned ‘mega-corridors’ in developing regions, supported by the Bank and other international finance institutions (see Observer Spring 2018,Winter 2017). As noted by online media outletAfricaRenewal, the “LAPSSET project [is viewed] as a major contribution to the African Union’s regional integration vision of a … fully integrated continent by 2063,” which will see LAPSSET’s proposed transportation infrastructure eventually extend to Douala, Cameroon, via Juba, South Sudan – enabling the creation of integrated trans-African transport infrastructure between East and West Africa.

As highlighted in a December report by Belgium-based CSO network Counter Balance, however, such mega-corridors risk promoting a model of development that is incompatible with climate action and the Sustainable Development Goals: “The building of planned mega corridors would … mean locking-in the current extractivist development model. This agenda … is largely reliant on fossil fuels, mining and large-scale agribusiness.”

Warming of Ethiopia-Eritrea relations puts proposed LAPSSET mega-project under microscope - Bretton Woods Project
 
Boss Debt to GDP ratio is not the best measure of solvency of a country..GDP does not pay debts..Revenues pay debts and as far as kenya is concerned, KRA always misses revenue targets, revenue growth is 3% YoY versus a debt obligations growth of close to 20-30% YoY..
If you have been following Tz banking reforms you would know why they are making less profits..Boss banks in kenya do only 1 thing, but treasury bonds for profit and organize syndicated loans for the ever broke GoK
You dont understand economics,it futile to drill basic concepts into your hardened skull
 
Evidence of that? Tanzania has never failed creditworthiness! Tanzania has not taken Eurobond as they r waiting for a more cheaper deal. Unlike Kenya and Ghana that rushed into deals and now regretting! Fool stop coming with this gibberish!
 

Gdp doesnt pay debts. I am not that dumb to think that. Revenues pay debts, ofcos.
Now that u have mentioned KRA, despite its revenue shortfalls, doesnt it best TRA, by a wide margin in terms of revenue collection performance?

Tanzania's external debt stands at a paltry 38% of the gdp, yet...just look where it is listed below:

Heavily Indebted Poor Country (HIPC) Initiative

Tanzania has lower debt levels, not for a good reason...

Press Release: IMF and World Bank Support US$3 billion In Debt Service Relief For Tanzania Under Enhanced HIPC Initiative

Cc Geza Ulole
 
KRA Collects more Tax than TRA But kenya cannot pay it debts and keeps rolling over debts and borrowing Eurobonds to pay for other eurobonds and concessional loans, something that Tz can never do under JPM.
Even on a personal level, your salary does not determine your wealth, how you spend it does.
As for TZ being in HIPC, this is an advatage not a disadvantage. Tz enjoys grants,soft loans and very good terms. The only disadvatage is that commercial lenders(Eurobond) do avoid HIPC..but the dynamics of lending have changed, Tz credit rating is same if not better than kenya..Eurobond investors are lending to even poor countries like rwanda and mozambique..But for JPM, Commercial loans and soverign bonds are the least prefered methods of revenue generation
 
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