Musings From Abroad

2022 HPI: South Africa has strongest passport in Africa. See how others fared

Published

3 years ago

April 5, 2022

Beyond the advantages of telecommunication and technology in general, one of the realities of the world being a “global village” is that state boundaries are reduced to the minimum, and citizens of different countries are able to move from one “village” to another with fewer hassles. One main factor in achieving that is the strength of one’s national passport.

Thus, the establishment of the Henley Passport Index (HPI). The index is a global ranking of countries according to the travel freedom enjoyed by holders of that country’s ordinary – as opposed to diplomatic – passports. Simply put, the passport index considers what travel benefits accrue to the holder of a particular passport.

The Index compares the visa-free access of 199 different passports to 227 travel destinations. If no visa is required, then a score with a value = 1 is created for that passport. The same applies if you can obtain a visa on arrival, a visitor’s permit, or an electronic travel authority (ETA) when entering the destination.

The Henley Passport Index (HPI) for the year 2022 has been released and African countries have not fared too well.

Japan and Singapore are joint top at number one with 194 Visa-free scores. What that means is that holder of Japanese and Singaporean passports can access 194 countries across the world. Germany and South Korea and joint second with 190 Visa-free scores while Finland, Italy, Luxembourg, and Spain occupy the third position with 189 Visa-free scores.

In Africa, South Africa passport is the strongest in Africa, occupying the 53^rd position and 104 Visa-free scores. Botswana is second in Africa with 86 Visa-free scores while Namibia is third in Africa with 78 Visa-free scores.

Lesotho is next with 77 Visa-free scores; Malawi is next with 73 Visa-free scores. Kenya and Tanzania are joint 72 globally with 72 Visa-free scores.

Meanwhile, Nigeria, one of Africa’s biggest economies occupies 40th position in Africa and joint 99 globally with Ethiopia with 45 Visa-free scores just one position above war-ridden South Sudan in 100 on the global index.

Musings From Abroad

World Bank doubts Ethiopia-IMF debt assessment

Published

2 days ago

December 24, 2024

Ifeoluwa Dada

Some officials of the World Bank have questioned if the study supporting Ethiopia’s debt restructuring may be “faulty” after criticising an evaluation of the country’s finances done with the International Monetary Fund (IMF).

World Bank consultant, Brian Pinto, and its head economist, Indermit Gill, evaluated the July Debt Sustainability Analysis (DSA), which was created by the IMF and employees of the International Development Association (IDA), the World Bank’s fund for the world’s poorest countries, in an internal document seen by Reuters.

According to the authors, Ethiopia is experiencing a short-term cash shortage rather than a long-term solvency problem, which is a source of conflict between the government and holders of its $1 billion international bond that is in default, based on the DSA.

“We found that the bondholders have interpreted the DSA correctly, but the DSA itself may be faulty,” Pinto and Gill wrote in the paper from earlier this month. “The disagreements about Ethiopia’s debt sustainability will be repeated as other countries become debt distressed.”

A World Bank representative responded to a question regarding the paper by saying, “We generally don’t comment on internal deliberations between the World Bank and the IMF or any of our partner institutions.”

As part of the most recent review of the Fund’s loan program, Ethiopian State Finance Minister Eyob Tekalign told Reuters that the DSA had just been reviewed by IMF and World Bank teams and that the status had not changed significantly.

Without providing further details, an IMF representative acknowledged that its officials travelled to Ethiopia in November for the second review of the Fund’s loan program and added that every review incorporates an update to the DSA. Regarding the memo, the spokeswoman remained silent.

A request for comment from Pinto and Gill was not answered. There has been a tense confrontation between Ethiopian officials and bondholders.

The main point of contention is whether, as bondholders contend, Ethiopia is experiencing a liquidity shortage that may be resolved by rescheduling debt or if it is experiencing longer-term financial issues that necessitate haircuts, or debt write-downs.

According to the DSA, certain statistics on exports indicated pressures on both liquidity and solvency.

It was reported in October that the DSA indicated a solvency problem and that writedowns were inevitable. Investors have criticised a government proposal that suggests an 18% haircut in addition to rejecting the evaluation.

Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.