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Zambia pushing hard for $15 billion debt restructuring – Finance minister, Situmbeko Musokotwane

Published

2 years ago

November 30, 2022

Zambia’s finance minister, Situmbeko Musokotwane has revealed that the Southern African country is pushing hard to complete the restructuring of nearly $15 billion of external debt in the first quarter of 2023.

The minister said the country is “in active engagement” with its largest bilateral creditor China.

Zambia opted to bow out of a $42.5 million Eurobond repayment in 2020 and is seeking $8.4 billion of debt relief from 2022 to 2025. The country has been on a quest to restructure its loans and rebuild an economy ravaged by mismanagement under previous administrations and COVID-19.

The minister said that China had sought clarification from the Zambian government and the IMF on their debt agreement.

“The Chinese… are asking (for) a number of clarifications, which we and the IMF are providing them,” Musokotwane said.

Musokotwane further revealed that the Export-Import Bank of China is representing all Chinese creditors in their restructuring negotiations with Zambia

The creditors include commercial banks, the Industrial & Commercial Bank of China Jiangxi Bank, and China Minsheng Bank.

He hinted at the country having potential new investors in Konkola Copper Mines (KCM) and Mopani Copper Mines (MCM).

“We are hoping that by the first quarter of next year we should be there with some of them. And also some of the new investments that are coming from the U.S. and other places,” he said.

Mining is a critical part of Zambia’s economy. In 2021, a whopping 79.5% of the country’s exports came from mining, with the sector remaining Zambia’s major productive industry. A total of 11.1% of Zambia’s Gross Domestic Product (GDP) came from mining, and 2% of the country’s national employment.

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Botswana grants a mining permit for its first manganese operation

Published

6 hours ago

September 19, 2024

Ifeoluwa Dada

Giyani Metals, Botswana’s first manufacturer of manganese suitable for batteries, revealed that the country had granted it a 15-year mining permit.

The demand for manganese, a crucial component of batteries, is anticipated to rise due to the rise in electric vehicles and other clean energy applications.

One of the few battery-grade manganese projects outside of China is Giyani’s Kgwakwe Hill (K.Hill) project, which will process manganese oxide material on-site to generate high-purity manganese sulphate. 90% of the world’s supply of high-purity manganese is controlled by this Asian nation.

An early economic study from 2023 states that the K. Hill mine will produce 80,000 metric tonnes of high-quality manganese sulphate monohydrate annually throughout a 57-year life.

“The next step is production of battery-grade manganese from our demonstration plant, which is under construction in Johannesburg, South Africa,” the Canadian company said in a statement.

It further stated that the product from the demonstration facility will be utilised for off-taker qualification, an essential stage before the signing of offtake agreements.

The diamond industry is very important to Botswana, which produces the most diamonds globally in terms of value. The gem industry accounts for 30% of national income and 70% of foreign exchange earnings.

The nation wants to diversify its mining industry by using resources including iron ore, nickel, copper, and coal.

The nation is home to three active copper mines in addition to its two active coal mines.

The demand for battery metals like manganese is predicted to decrease the nation’s dependency on diamonds as a result of the growing need for green minerals worldwide brought on by the energy transition.

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Ghana records fastest growth in 5 years as GDP expands by 6.9% in Q2 2024

Published

6 hours ago

September 19, 2024

Ifeoluwa Dada

Ghana has recorded its strongest rate of economic growth in five years in the second quarter of 2024, with the country’s statistics agency reporting on Thursday that the country’s GDP expanded by 6.9% year over year.

The country, which is a top producer of cocoa, oil, and gold has been battling the greatest economic crisis in a generation as a result of spiralling public debt, the robust rise signifies a noteworthy comeback.

“The 6.9% growth rate is the highest since the second quarter of 2019 and it was driven largely by strong expansion in the extractive sector, just as we saw in the second quarter of 2019,” government statistician Samuel Kobina Annim said.

Mining and quarrying contributed to the 9.3% growth in Ghana’s overall industry sector, while the gold sector climbed by 23.6% during the quarter for the third time in a row. Agriculture expanded 5.4%, but the services sector grew by 5.8%, according to Annim.

However, the cocoa sector shrank by 26.2% for the fourth consecutive quarter, underscoring the effects of a persistent drop in crop output brought on by disease and unfavourable weather.

The West African state is benefiting further from the economic recovery as it restructures its debt. After striking a preliminary restructuring agreement with two bondholder groups, it has extended an invitation to holders of its about $13 billion worth of international bonds to exchange their holdings for new instruments.

Bondholders can accept the offer until September 30. However, there will be a 1% consent fee for those who accept it before an early deadline of September 20.