Musings From Abroad

China calls for more efforts from US over debt burden on African countries

Published

2 years ago

April 10, 2023

China has urged the United States to take seriously its obligations and make more effort to resolve the debt problems in African countries.

The Chinese Foreign Ministry Spokesperson, Wang Wenbin made the call on Monday at a press briefing while responding to claims made by some U.S. and World Bank officials that China was a barrier to African debt relief.

Wenbin maintained that China attaches great importance to debt issues in Africa, and actively helps African countries cope with the issues. He said China had made the largest contribution to the G20 Debt Service Suspension Initiative (DSSI).

“China has always been committed to providing support for the economic and social development of developing countries, including African countries, and has always carried out investment and financing cooperation with developing countries on the basis of equality and mutual benefit. Our country has always done its best to help developing countries ease their debt burden,” said Wang.

“China is not the source of the debt trap of African countries, but a partner in helping them and other developing countries get out of the poverty trap,” Wang added.

“Some Western politicians are weaving traps to disrupt and undermine China’s cooperation with developing countries. Their tricks have been seen through by developing countries and the international community, and there is no market for them,” said the spokesman.

Although China is the main creditor for some countries like Zambia, South Africa, and Zimbabwe, Wang argued that “data from the World Bank showed that multilateral financial institutions and commercial creditors hold nearly three-quarters of Africa’s total external debt, creating the biggest debt burden for African countries. which constitutes the biggest source of debt pressure on developing countries”.

“The debts of the World Bank and the International Monetary Fund (IMF) account for nearly 70 percent of the total debt held by multilateral financial institutions. The United States is the largest shareholder of the World Bank and IMF, and financial capital from the U.S. and Europe is the largest commercial creditor of African countries. There is a unshirkable responsibility for the U.S. to participate in solving Africa’s debt problems.

“We urge the U.S. side to earnestly shoulder its responsibilities and make greater efforts to promote the substantive participation of multilateral financial institutions and commercial creditors in addressing Africa’s debt issue,” said Wang.

In October 2022, the International Monetary Fund (IMF) described the near-term outlook for Sub-Saharan Africa as “extremely uncertain”. The Fund warned public debt and inflation were at “levels not seen in decades” and says several countries face “difficult sociopolitical and security situations.”

Several African countries like Zambia, Nigeria, Ghana, Tunisia, and Egypt, amongst others, are grappling with high foreign debt.

Related Topics:China Featured Foreign debt IMF

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Musings From Abroad

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

Published

21 hours 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.

Musings From Abroad

Blinken to reveal UN Sudan funding additions

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

Additional financing for humanitarian aid to Sudan and initiatives to strengthen civil society in the nation, where a conflict has killed tens of thousands of people and displaced millions, will be announced by U.S. Secretary of State Antony Blinken at the United Nations on Thursday.

Blinken will make many announcements when he leads a UN Security Council meeting on Sudan on Thursday, which will centre on humanitarian aid and civilian protection, Deputy U.S. Representative to the UN Ned Price told reporters on Wednesday.

According to Price, the announcements would include more money for humanitarian help, initiatives to strengthen civil society, and the return of democracy.

“Sudan, unfortunately, has risked becoming a forgotten conflict,” Price said.

“So part of the reason the secretary … opted to convene a signature event on this very topic is to make sure it remains in the spotlight,” Price said.

For almost 18 months, the paramilitary Rapid Support Forces and Sudan’s army have been engaged in combat, resulting in a severe humanitarian crisis that has forced over 12 million people from their homes and made it difficult for U.N. organisations to provide aid.

A power struggle between the RSF and the Sudanese Armed Forces preceded a planned shift to civilian administration, which sparked the conflict in April 2023.

Although the army declined to join this year’s U.S.-mediated peace negotiations in Geneva, the warring parties did pledge to increase assistance access, which prevented any movement towards a ceasefire.

Price stated that before President Joe Biden’s term ends next month, the United States would keep collaborating with allies to enhance humanitarian access in Sudan and eventually end hostilities.

“We are going to leave nothing on the field in our efforts to work with allies, with partners, with the Sudanese stakeholders themselves, on the issues that matter most – humanitarian access, the provision of humanitarian assistance, ultimately, the process by which we can work to get to a cessation of hostilities, which is most urgently needed,” he said.