Musings From Abroad

Major creditor, China, rallies support for Zambia’s debt restructuring

Published

1 year ago

November 13, 2023

Zambia’s major creditor, China, has called on the country’s other creditors to shoulder a “fair burden” amidst Zambia’s recent push for debt restructuring.

China’s call comes after a multilateral body, the International Monetary Fund (IMF) and official creditors “expressed reservations” over a deal Zambia struck with overseas bondholders.

Zambia’s finance ministry said on Friday that it, along with a bondholder committee, had continued talks after the official creditor committee, co-chaired by China, France and the International Monetary Fund, had voiced their doubts over the “last several days”.

An IMF spokesperson said in a statement late on Friday that “IMF Staff have been working with the authorities and their advisers to assess the implications of the proposed agreement in principle (AIP)”.

“Further discussions and modifications are needed to bring this initial proposal more fully into line with the requirements of the program. We understand that the authorities intend to discuss further with their creditors in the coming days”, the official added.

China’s Ministry of Foreign Affairs said on Monday, in a faxed response to a Reuters question on the reservations over the bondholder deal, that “all creditors should work together and participate in Zambia’s debt disposal under the principle of ‘common action and fair burden.”

Since the announcement of the deal in principle, the bonds have appreciated. But the news of the IMF and official creditors’ reservations has caused Zambia’s bonds to decline; the 2024-dated note was down more than 0.9 cents on the dollar to 63.036 cents when the news broke.

Borrowing increased during the pandemic to finance immediate public health needs and to protect lives and livelihoods. The debt situation in Africa is now compounded by the Russia-Ukraine conflict, undermining debt sustainability across African countries.

Being the first African country to default on its debt during the coronavirus pandemic, Zambia has struggled, especially around the country’s debt burden and complications with negotiating a way out with creditors like China, its biggest foreign creditor.

Related Topics:debt burden Featured President Xi Jinping Zambia

Click to comment

Musings From Abroad

Nigeria, India to strengthen counterterrorism, maritime security cooperation

Published

5 hours ago

November 18, 2024

Ifeoluwa Dada

During a state visit to Nigeria on Sunday, Indian Prime Minister, Narendra, Modi reached an agreement, on behalf of his country, to strengthen cooperation in counterterrorism, intelligence, and maritime security.

President Bola Tinubu invited Modi to visit Nigeria, the first Indian prime minister to do so in 17 years.

Tinubu is looking for investments from some of the largest economies in the world.

In addition to discussing economic development, defence, healthcare, and food security, Modi and Tinubu met at the presidential mansion on Sunday after arriving in the capital, Abuja, on Saturday night, according to a joint statement.

The two nations decided to work together to protect maritime trade routes and fight piracy in response to the mounting risks in the Indian Ocean and the Gulf of Guinea.

The most populous country in Africa, Nigeria, is looking to attract more Indian investment and lower-cost credit lines in order to strengthen its economy and generate employment.

Nigeria announced last year that it had obtained about $14 billion in pledges from Indian businesses, including Jindal Steel and Power, which promised to spend $3 billion in Nigeria’s steel industry, during the G20 conference.

Over 200 Indian businesses are present in Nigeria.

Modi was scheduled to go to Brazil for this year’s G20 conference after Nigeria.

Nigeria and India have a long-standing and cordial bilateral relationship. Nigeria, home to more than 200 million people, and India, home to 1.3 billion people, are both sizable emerging nations with multilingual, multiethnic, and multireligious communities.

Musings From Abroad

Military advisors from Russia arrive Equatorial Guinea

Published

1 day ago

November 17, 2024

Ifeoluwa Dada

Russian military advisors are in Equatorial Guinea training indigenous soldiers.

Anonymous sources cited by Reuters during the week claim that between 100 and 200 Russian instructors are training with elite guards in charge of guarding the President and the first family.

The males had been seen in Malabo, the country’s capital, and Bata, its second city. Reports of Russian forces stationed in the nation initially appeared in August.

Oil-rich Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo has maintained close relations with Moscow.

Nguema travelled to Moscow in September to attend the Russian Energy Week International Forum.

Russia has strengthened military connections with African countries, sending advisors and combat soldiers to the Central African Republic, Mozambique, Mali, Niger, and Burkina Faso.

Faced with an Islamist terrorist insurrection, three Sahel countries have turned to Moscow for support, expelling French and American troops.