Since we are reviewing hizi loans with unfavorable terms from Chinese,
How about getting say usd 15 billion from the Gulf/GCC countries?
Wao hawataki interest (religious reasons) lakini I’m sure they can invest in Infrastructure. UAE’s Mohammed bin Zayed is already doing in Ethiopia, Djibouti, Eritrea, and Somalia
Not sure what Saudi Money has been doing in terms of investments in Africa lakini if we can get at least usd 3 billion from Qataris we should be ok
wao wakigombana sisi tuangalie tunafaidika vipi…its about national interests…
Mimi huwa sielewi hii mambo ya shariah compliant banking. You cannot offer loans without interest. How now? Unless they charge interest in other forms, the same way M-shwari insists their 7.5% monthly interest charge is merely “facilitation fee”.
since we can’t feed ourselves as a country…maybe they could come help us setup mega irrigation schemes up north where their influence is already acceptable…my 2 cents
Gulf states loans are specific to two areas. Mission specific to a region close to them or their cultural/religious beliefs. No problem with that since its their money and you are asking for a loan. Secondly for bigger loans they want something big in return as collateral I.e the $2 billion emergency loan for Ethiopia to prevent them from being broke came with them giving up any attempt to rival them in their joint port plan in Somaliland.
Sharia law is simple when it comes to “riba”(a foam of interest free loan):
You want a loan of $10k then I tell you “I’ll give you the $10k when you bring it back ,bring $12 all at once”.I don’t want to take advantage of you by charging you an interest of remaining balance every month or year no, just bring me $12k.
It’s same as Arabic business men who buy a car for $10k and sell it to you for $12k. That’s a legit business that even prophet Mohammed SWS advocated for .hope umeelewa
We cannot get Arab money, the west will propaganda us to siding with ‘terrorists’.
The west are very jealous, they don’t want to see us benefit from other people, because they the west always have hidden agendas when they ‘helping’ us.
Basically hawataki kutuona tukifaidika.
You’d be surprised, they really don’t care to spread the religion or culture as you may assume.
The people who preach outside in Africa are on a very small scale. And they mostly just come help and do some water wells and build a mosque and they go their way. Like @spear mentioned, they’ll concentrate on predominantly Muslim areas mostly.
They aren’t on that missionary game like the whites and they won’t force religion down on anyone.
Anyways we east Africans have a lot of afro Arab culture already, what else would be forced on us? Unless you came up from the village, most major towns in Kenya have seen the Islamic culture from back in the day, tushazoea.
Profit and interest on loan are not the same thing. When I sell you clothes, you give me your money and I give you the clothes. Our business ends there unless you’re a repeat customer. I’m under no obligation to disclose to you the customer how much profit I’ve made from selling clothes to you. But with a loan, I give you my money with the understanding that you will give it back at a later date. I’m also required under law to tell you how much you will pay back, and if it’s more than whatever I loaned you, then it’s interest, at least by common accounting standards.
Islamic financing is quite complicated there are 4 different types of loans:
1.Mudarabah- it can be loosely translated as ‘profit-and-loss sharing’, is similar to a partnership where one partner lends money to another so they can invest it in a commercial enterprise. The first partner invests in the enterprise while the other has the responsibility to manage and work on the investment. By doing this, each partner shares a responsibility in the loan.
Ijara means ‘lease’ in Arabic, the bank buys the property that you’re looking to purchase and then leases it out to you. The bank transfers the ownership of the property to you once the loan term ends.
Musharakaa- meaning ‘partnership’, you and the sharia compliant lender buy the property together. Afterwards, you gradually buy the bank out of it. To explain, if you put down 20% of the purchase price, the lenders will pay the remaining 80% of the purchase price. You then need to pay monthly rent on the share to the bank, as well as buy more shares in the property. The more shares you own, the less rent you pay to the bank, until you own the property outright at the end of the loan term.
A Murabaha plan is where the bank will buy the property you want and immediately sell it on to you for a profit. The name can be loosely translated to ‘profit’. Quoted from Shariah board KSA
Unlike conventional banking, Islamic banks can’t make money with money, because under Sharia law money is only a medium of exchange, a way of defining the value of something and it has no value in itself. Therefore, money isn’t allowed to generate more money by being put in a bank or lent to someone else.
As part of its debt management strategy, the government intends to diversify its external borrowing to include sukuk bonds, that are essentially shariah compliant and dominated by one of the gulf countries’ currency. Its an option yet to be exploited.