The Chartered Institute of Development Finance (CIDEF) has cautioned the government against over-reliance on donor funding for development projects.
Executive president Nicholas Biekpe said the government must be wary of exposing the country too much to developed countries.
CIDEF is a professional and learnt body for development finance specialists.
“Our leaders need to understand what is there for us. When you get an African delegation that goes to China or Europe and they don’t understand the negotiating principles, then we have a problem,” said Prof Biekpe during a CIDEF development finance forum held in Nairobi.
“Self-interest is key in any bargaining power … it is never about the other person,” he said.
Two weeks ago, China pledged $60 billion (Sh6 trillion) in financing for projects in Africa in the next three years. This has stirred a huge debate about debt sustainability outlook of most African countries.
Many now see China loans as debt-traps, considering that China has been using the model of contracting and not investing.
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