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Zambia is being punished wrongly over debt restructuring— Finance Minister, Musokotwane

Published

2 years ago

April 6, 2023

Amidst the financial crisis facing the South African country, Zambia, it’s finance minister, Situmbeko Musokotwane has claimed that the country is being wrongly “punished” for a failure to complete debt restructuring.

Situmbeko Musokotwane argued in an interview in Lusaka when asked when news could be expected about the completion of the debt relief process.

“This is no fault of ours, it is the fault of those we engaged with,” he said.

“I don’t want to give a date, but all I can say is that there is very serious discussion that is going on. Everybody appreciates that Zambia is being punished for no fault of hers.”

Zambia is pushing hard to complete the restructuring of nearly $15 billion of external debt this quarter and is “in active engagement” with its largest bilateral creditor China. Many Western officials have blamed delays in agreeing the debt relief on China.

International lender, the IMF recently revealed that the next payout to Zambia from a $1.3 billion rescue loan was contingent on the country’s bilateral creditors reaching a debt restructuring agreement.

“The Chinese are asking questions, the bondholders are also asking questions … but constructive questions, so that’s no problem,” Musokotwane said.

“The good thing is that everyone is committed. Bondholders say they want a resolution to this, the Chinese say they want a resolution to this.”

Zambia was the first African country to default on its debt during the coronavirus pandemic. Of the total debt, China is the largest foreign creditor.

Zambia’s economy rebounded in 2021, with real GDP growing at 4.6%, from a contraction of 2.8% in 2020. In 2022, challenges in agriculture, mining, and construction slowed down its pace of post-pandemic economic recovery.

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Moroccan annual inflation rises to 0.8% in November

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

6 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”