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China assists Zambia in restructuring debt process

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The Chinese government has come to the aid of Zambia by helping the African country to structure its debt process with multiple creditors including the International Monetary Fund (IMF).

The Zambian President Hakainde Hichilema disclosed on Monday during the first quarter 2022 Economic Conference in Lusaka, that China had come on board to commit and join other creditors in the country’s debt restructuring process.

Hichilema emphasized that without the gesture from China, it would be difficult for his government to record sustainable economic development with the current high debt levels.

“I am proud to announce to the nation that we engaged China, we engaged other creditors to negotiate a debt resolution package,” Hichilema said.

“I engaged China myself as President, that’s my job, which you gave me, working together with the Ministry of Finance and Foreign Affairs, we want to thank China for joining the common framework agreement to resolve the debt crisis,” he disclosed.

Hichilema further hinted that with China playing a key role, it was no coincidence that the country has continued to record a reduced inflation rate and stable exchange rate as a result of the measures the government continues to implement to bring stability to the country’s economy.

He added that Zambia has recorded progress with the debt restructuring program which is targeted at restoring and reviving the country’s economy.

“Last year, we reached the staff-level agreement with the IMF on the debt restructuring, you can’t build the economy with huge debt mountains, and we undertook a decision to dismantle this debt and create room to release resources towards debt servicing in the economy to create jobs and grow the economy,” he said.

Just last week, the IMF also reached a staff-level agreement with Benin Republic on a new 42-month extended credit facility worth $658 million.

In a statement by the global bank on Friday, the extension of the credit facility was intended to help the impoverished West African country address its pressing financing needs related to security, the impact of the COVID-19 pandemic and the war in Ukraine, as well as anchor its national development plan.

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Politics

Mozambique’s top court affirms governing party’s victory in recent election

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The highest court in Mozambique affirmed Monday that the incumbent Frelimo party won the October election, sparking widespread demonstrations from opposition parties who claim the vote was manipulated.

Fears of fresh bloodshed have been raised in the nation already shaken by weeks of fatal protests after Mozambique’s top electoral court mostly confirmed the results of the country’s contentious October elections, reinforcing the Frelimo party’s decades-long hold on power.

The final decision on the election process rests with the Constitutional Council. Mozambique, a nation of over 35 million people in Southern Africa that Frelimo has ruled since 1975, is expected to see more protests in response to its judgement.

Mozambique operates a framework of a semi-presidential representative democratic republic in a multi-party system. The president of Mozambique serves as both the head of state and the head of government.

The government exercises executive power. The administration and the Assembly of the Republic have the authority to enact laws.

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Politics

Alliance of Sahel States opposes ECOWAS disengagement schedule

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The Economic Community of West African States (ECOWAS) withdrawal timeline has been rejected by the Alliance of Sahel States (AES), which is made up of Mali, Burkina Faso, and Niger.

The AES claims that the ECOWAS is attempting to destabilise their newly formed organisation.

During a meeting last week in Abuja, Nigeria, the regional organisation announced a six-month withdrawal period to give the three nations time to change their minds after their official departure date at the end of January 2025.

However, this decision is “nothing more than yet another attempt by the French and its auxiliaries to continue planning and carrying out destabilising actions against the AES,” according to the heads of state of the AES.

“This unilateral decision is not binding on the ESA countries,” the statement continues. Before the conference, they stated that their choice to leave the organisation was “irreversible.”

According to the president of the Ecowas Commission, this will be a “transition period” that ends on “July 29, 2025” to “keep the doors of Ecowas open.”

The three nations accused the bloc of neglecting to assist them in resolving their domestic security challenges and of imposing “inhumane and irresponsible” sanctions related to the coup.

The three nations that were involved in the coup have mostly rejected ECOWAS’ attempts to undo their withdrawal. They are creating their alliance and have begun thinking about how to issue travel passports independently of ECOWAS.

It is anticipated that they will finish giving their one-year notice of departure in January.

Visa-free travel to other ECOWAS members is a significant perk of membership, and it is unclear how this would alter after the three nations exit the group.

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