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Chinese Loans Only Suit ‘Mad People’; They will Mean Selling Tanzania to the Chinese – Magufuli

Tanzania 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 programs 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.

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