Mogadishu(somalilandmirror.com)-On the 22nd of December 2018, the EXIM bank of China announced that they have agreed with the Government of Somalia on a loan of $200million in order to rebuild the Mogadishu port,
thus giving the bank an exclusive fishing rights over the coast of Somalia while maintaining part ownership of the port until the loan has been paid in full.
It is believed that the port of Mogadishu was used to secure the loan in a similar style to the agreement between Kenya and China.
Recent reports from Kenya suggest the country could lose Mombasa Port to China if Kenya Railways Corporation defaults in the payment of a loan from Exim Bank of China.
The country used Mombasa port to secure the loan which was taken from the Chinese bank to finance construction of the Standard Gauge Railway (SGR).
Consequently, It comes as no surprise that China’s activities in Africa have raised a lot of eyebrows and an overflow of scepticism, especially in the wake of the “debt-trap” diplomacy.
This comes as the Trump administration announced a sharp refocus of its Africa strategy.
Under the new “Prosper Africa” strategy, the US will encourage African leaders to choose high-quality, and transparent, foreign investment projects.
More than a quarter-century after the fall of the central government , Somalia’s fragile central government is still trying to take control.
It wrestles with widespread corruption, difficult relations with regional states and high-profile attacks by the al-Qaida-linked al-Shabab.