Kenya and China have reached a groundbreaking agreement to restructure $3.5 billion in railway loans, converting them from U.S. dollars into Chinese yuan. The move could save Kenya $215 million in debt servicing costs and marks the first time an African nation has shifted major sovereign debt into RMB — a potential model for other Global South countries.

In this episode, Eric & Géraud unpack what this deal really means for Kenya, China, and the broader narrative around China's “debt-trap diplomacy.” They explore how the agreement challenges old assumptions, what it says about the future of RMB internationalization, and whether other countries — like Indonesia — could follow suit.

Chapters: 00:00 – Introduction 02:45 – How the Kenya–China debt swap works 09:30 – Why this deal matters for China’s RMB ambitions 15:10 – The myth of the “debt trap” revisited 25:40 – Lessons for other Global South economies 34:00 – Cameroon’s shifting trade ties with China and France

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