Namibian Opposition Leader McHenry Venaani said their government must renegotiate foreign loans to avoid falling into the same trap as Sri Lanka and some African countries, the Namibian reported yesterday.
Venaani said foreign loan agreements that Namibia entered into, especially those secured from China, were badly structured, and do not necessarily benefit local people, despite a lot of opportunities that they created.
The Popular Democratic Movement (PDM) leader made these remarks on Monday shortly after meeting Chinese Ambassador to Namibia Zhang Yiming in Windhoek.
In an interview with The Namibian, Venaani said Chinese loan agreements with African countries and Namibia were badly structured, to a point where if a country defaults, it loses its natural assets to China.
He cited the example of Sri Lanka, which leased out a port after failing to pay back Chinese loans.
Venaani said the government thus needs to renegotiate foreign loans to avoid falling into the same trap as Sri Lanka and some African countries did.
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