AMIR Fact finding paper

FACT FINDING

ASSIGNMENT
“FACT FINDING”

PREPARED BY:

AMIE SONKO
AMIR 1101

PREPARED FOR:

PROFESSOR: PARKER

DATE OF SUBMITTION

25 OCTOBER 2018

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FACT FINDING

TABLE OF CONTAIN
• PREFACE
• ABSTRACT
• ACKNOWLEDGEMENT
• LIST OF QUESTIONS
Q1. Africa drown in debt
Q2. Chines loans to African countries?
Q3. Some list of African countries?
Q4.which country first borrowed from IMF?
Q5. What country are members of IMF?
Q6. What are the main reasons countries take loans?
Q7. Does the loans come with interest?
Q8. Which country have no debt?
Q9. What happens if a country cannot pay its debt?
Q10. Can a country refuse to pay its debt?
• REFERENCES

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FACT FINDING

PREFACE
This is my first time writing on a fact finding paper, and it has giving me the opportunity
to know the difference from a common research paper and a fact finding paper. Doing this paper
gives me the ability on not only being more aware of what’s going on but also help be to create
awareness on writing to share with friends and to whom ever it may concern.

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ABSTRACT
This fact finding paper gives me the opportunity to explore and go in dept research of my
own continent and how drown we are slowly going with the loans from different places
especially from chines government and some investors around the globe. Most of these countries
main purpose and intention are for developing their countries for it citizens satisfaction, which is
for a better leaving and employment opportunities, without the awareness of some consequences
that might come its way.
I was able to make researches on few websites and most of the online tools available and
also watch some youtubers that made videos on both past and current developments and
conference’s being held about loans and contracts being signed, and some interviews held by
news medias with some of the African presidents and leaders.
Other than chines investment, I was able to provide some general information about the
world in general with the range of the countries in dept from IMF and also the main reason of
IMF and its source.

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ACKNOWLEDGE
My greatest gratitude goes to my professor, Val Parker who does not only provide
a link on how we can visually see on how to write an APA paper, and the process on
writing a fact finding paper. but also, him taking few minutes on every class session
explaining and asking us on weather we have any questions and issues we may want to
know pertaining on this paper.

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Question 1
Africa countries drowning in debt trap?

Source: https://www.jstor.org/stable/160355?seq=1#page_scan_tab_contents

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Question 2
Chines loans to African countries?

Source: https://www.scmp.com/news/china/diplomacy/article/3020394/are-chinese-
infrastructure-loans-putting-africa-debt-trap

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Question 3
Some list of African countries in debt?

Source:
https://www.africanexponent.com/post/9183-here-are-the-top-ten-countries-in-africa-
bearing-the-largest-chinese-debt

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Question 4
which country first borrowed from IMF?

Source: https://en.wikipedia.org/wiki/International_Monetary_Fund

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Question 5
What country are members of IMF?

Source: https://www.imf.org/external/np/sec/memdir/memdate.htm

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Question 6
What are the main reasons countries take loans?
Source: https://www.quora.com/Why-do-countries-borrow-money

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Question 7
Does the loans come with interest? Debt trap policy

Source: https://en.wikipedia.org/wiki/Debt-trap_diplomacy

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Question 8
Which countries have no debt from china?
Source: https://www.quora.com/Are-there-any-countries-in-the-world-that-are-not-in-debt

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Question 9
What happens if a country cannot pay its debt?
Source: https://www.thebalance.com/what-happens-when-a-country-defaults-1978981

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Question 10
Can a country refuse to pay its debt?
Source: https://www.bbc.com/news/business-24453400

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African countries in debt from china and foreign countries

China is in a rapid push to gain economic and political Ascendancy in the world. And its
flashing billions of dollars in concession of loans to developing countries for infrastructural
project. In Africa, china is financing major projects across the continent and as at now, many
countries are enjoying the investments injections of new highways, hospitals, schools, airports,
and promises of economic developments.

A journal of modern African studies at Cambridge university press shows that “Africa’s
external debts have grown dramatically from about $6,000 million in 1970 to about $82,000
million in 1985”. I will personally like to go in details about my experience in growing up in a
small west African country The Gambia. Gambia is a developing country colonies by the British
in 1880s in which we gain our independent in 1965, and had to start from scratch to sustain our
citizens. One with a low mindset will say that is not hard to satisfied everyone need since we are
considered the smallest country with a population of 2.101 million. But there is what I have to
say, starting from scratch means having nothing but as lucky as we are and some other countries
as well in terms of the fertile and good weather condition in terms of food cultivations and
production, we need tools and technical knowhow on how maintain a good production which
was and still not available as we will want it to. Coming to education, transportation and
medical health sectors which are the needs of people where less to none available and the only
way our new government thought will be helpful was to join some None Governmental
Organization (NGOs) and some other organization group in which some are giving loans to
develop their countries.

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The biggest concern is that a lot of this countries will be left with a huge debt and a
possibility of low profits on whatever they may put their trust on by paying the loan back. Their
intention might be free at first. I quoted “In the early 1990s, when China began to embrace
Africa again after years of isolation from the outside world, the aspiring manufacturer was at a
serious disadvantage in the race for raw materials and markets for its industrial goods” there
were no support from the outside world and chine was the only option available for their needs.
They have a good strategies on making deals and convincing them to gain access in their markets
of productions with an assurance of not to interfere in their internal affairs but with the start of
some projects going forward they had to send some of their employees to work with African.

Most of this countries include Angola, Ethiopia, Kenya, The republic of Congo. North
Sudan, Zambia, Cameroon, Nigeria, Ghana, and The Democratic Republic of Congo (DRC).
Angola is said to be the most in debt from china in all African country but all what it still have in
common with the rest is they all are in debt from china and there is no transparency of the rest on
its nations citizens to know what exactly is in behind the close doors.

Debt trap is common, most of the conditions on loans are not made public. The definition
of debt trap is when a debt is made difficult to pay back but with all this happening there are few
countries that are debt free, countries like Singapore, Taiwan and few other countries. A
possibility of a country not being able to pay back its debt on time, its creditors may extend the
time period or if not possible then they can see a way around on dealing with it. I personally have
seen some credits take share in portions of the debtor country facilities or companies.

speaking of transparency, International Monetary Fund (IMF) has been formed in 1994 at
the Bretton Woods Conference, consisting of 189 countries to secure financial stability and
promote higher employment rate to reduce poverty around the world. It consists of some African

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countries and its members dependent of in for its financial importance, it allows its member that
might experience balance of payment problems to borrow money and later pay back it also
provide policy advice on finances for its members.

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