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Zambian President, Hichilema to visit China as talks on debt restructuring continue

Published

1 year ago

September 8, 2023

Chinese foreign ministry has announced that Zambian President, Hakainde Hichilema will visit China on Sunday as moves to restructure the country’s external debt continue.

China is a major creditor to Zambia as around two-thirds of the $6.3 billion debt Zambia is seeking restructuring with its official creditors is owed to the Export-Import Bank of China.

In 2020, Zambia defaulted on its sovereign debt and began arrangements for debt restructuring under the G20 structure. The framework has not enjoyed smooth sailing; it has been slowed considerably by debates over which lenders should accept reductions.

However, at a summit in Paris in June, Zambia finally reached an agreement with its bilateral creditors, among them China, to reschedule its payments over a period of more than 20 years, with a three-year grace period during which only interest payments are required.

The Chinese foreign ministry spokesperson, Mao Ning, told journalists on Friday that “During President Hichilema’s visit… the two heads of state will hold talks and attend a ceremony to sign cooperation documents”.

“We will continue to maintain close communication with all parties in the Debt Committee and work with them on any follow-up work,” she added when asked whether that meant China would sign the MoU.

Apart from Zambia, three other countries have so far formally defaulted on their national debt: Ghana, Ethiopia, and Chad.

Beyond Africa, some other countries have already concluded debt restructuring, including Argentina and Ecuador, while others like Lebanon are bent on debt restructuring.

China has substantial commercial interests in Zambia. Between 2014 and 2023, China invested in over thirty projects in the country through its Belt and Road Initiative, totalling $11.3 billion. These projects range from the energy sector to agriculture and aviation.

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VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.

VenturesNow

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

Published

2 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.”