Inflated Deals A Debt Trap for Lesotho's Future Generations
Unless Lesotho governments refrain from the habit of awarding grossly inflated tenders for various infrastructure projects, future generations will be caught up in a massive debt trap which will only impede the country's development, analysts have warned. This follows the Lesotho Times' recent exposé of a massive scandal in which former prime minister Thomas Thabane's government allegedly agreed to a grossly inflated M2,8 billion (U.S.$181,7 million) deal with a Chinese contractor for the construction of a solar power generation project. The project has now been inherited by the current Moeketsi Majoro-led government after the collapse of the Thabane administration in May 2020. Low-income countries have been especially hard hit by the economic downturn caused by the Covid-19 pandemic, leading to more people needing assistance for their basic needs.
InFocus
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Low-income countries have been especially hard hit by the economic downturn caused by the Covid-19 pandemic, leading to more people needing assistance for their basic needs. This ... Read more »
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"Chinese investment does have the potential to address Africa's infrastructure gap, but its approach has led to mounting debt and few, if any, jobs in most countries," U.S. ... Read more »
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The plan to securitise and sell the Chinese debt to investors comes at a time when many African nations are seeking to either restructure their debts with Beijing or get friendlier ... Read more »
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Researchers at the African Union believe the continent will slip into a recession this year due to a huge fall in global oil prices and the impact the novel coronavirus pandemic ... Read more »
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Moeketsi Majoro was sworn in as Lesotho's new Prime Minister, a day after his predecessor, Thomas Thabane, resigned under pressure over a scandal involving the killing of his wife. ... Read more »
(File photo).