The cause of Africa's debt-development problem

SGR cargo train

An SGR cargo train passes over the Nairobi National Park on its way to Mombasa, November 6, 2020.

Photo credit: Salaton Njau | Nation Media Group

What you need to know:

  • The SGR loan comes in two parts: roughly half of the loan is purportedly “concessional” with an interest rate of 2 per cent; and the other half is commercial and has an interest rate of 6.93 per cent.
  • The feasibility of the project, its construction, financing, and operation were inextricably linked making it difficult for us to ascertain whether the government complied with its obligations under Section 50(1).

In this week’s article we end our exploration of debt in Africa. We look inward using the case of the Standard Gauge Railway (SGR) to explore debt ills. Inspired by the Court of Appeal judgement on June 19, 2020, Rayaan Anjarwalla, a brilliant young man who recently joined St Andrews University, writes below about his interest in other solutions to our debt-development problems. Here is what he had to say.         

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