Through its Belt and Road Initiative, China has become the world’s largest country-to-country lender. A new study shows that more than half of its loans threaten sensitive lands or Indigenous people.
There is concern over the growing influence of non-regional players in decision making at the regional bank.
Big new investors such as the Asian Infrastructure Development Bank are key players in a worldwide infrastructure, and that could be bad news for the environment.
Credit rating agencies have come in for a lot of flack. But the bottom line is that to attract investors with deep pockets countries can’t avoid having a credit rating. And a good one at that.
Since time immemorial, huge infrastructure projects have been financed with funds from the capital markets. Africa should not rely on development finance institutions.