Musings From Abroad

Rwanda claims UN refugee agency lied in British asylum policy case

Published

6 months ago

June 14, 2024

Rwanda claims that the UN refugee agency lied when it informed a British court this week that those who were transported to the East African nation as asylum seekers may be sent back to other countries where they might be subjected to torture or killed.

As part of a challenge to the British government’s policy of deporting asylum seekers to Rwanda, attorneys representing the United Nations High Commissioner for Refugees (UNHCR) claimed on Monday that the country’s asylum system was deficient.

The British Supreme Court’s argument for ruling the British plan unlawful last year was largely based on historical evidence, which the attorneys used to argue that the program put asylum seekers at risk of being forced to undergo the illegal process known as refoulement.

“UNHCR is lying,” Rwanda’s government spokesperson said in a statement on Tuesday.

“The organisation seems intent on presenting fabricated allegations to U.K. courts about Rwanda’s treatment of asylum seekers, while still partnering with us to bring African migrants from Libya to safety in Rwanda.”

The organisation claimed that it had always expressed concerns regarding the dangers that “externalisation”—including refoulement—posed to migrants.

“UNHCR … finds that the UK-Rwanda Asylum partnership shifts responsibility for making asylum decisions and for protecting refugees,” it said in a statement on Wednesday, declining further comment on grounds of related court action.

The UNHCR’s legal representatives brought up matters in court, according to Rwanda’s government, that included either voluntary departures or the arrival of people who had legal status in another country but did not meet entry standards.

Last Monday, Britain announced that the first flight to Rwanda would depart on July 24. However, this is contingent upon the Conservatives led by Prime Minister Rishi Sunak’s party winning the general elections on July 4.

That seems improbable given that the opposition Labour Party has promised to cancel the proposal if elected, and it now leads by almost 20 points in opinion polls.

Musings From Abroad

World Bank doubts Ethiopia-IMF debt assessment

Published

1 day ago

December 24, 2024

Ifeoluwa Dada

Some officials of the World Bank have questioned if the study supporting Ethiopia’s debt restructuring may be “faulty” after criticising an evaluation of the country’s finances done with the International Monetary Fund (IMF).

World Bank consultant, Brian Pinto, and its head economist, Indermit Gill, evaluated the July Debt Sustainability Analysis (DSA), which was created by the IMF and employees of the International Development Association (IDA), the World Bank’s fund for the world’s poorest countries, in an internal document seen by Reuters.

According to the authors, Ethiopia is experiencing a short-term cash shortage rather than a long-term solvency problem, which is a source of conflict between the government and holders of its $1 billion international bond that is in default, based on the DSA.

“We found that the bondholders have interpreted the DSA correctly, but the DSA itself may be faulty,” Pinto and Gill wrote in the paper from earlier this month. “The disagreements about Ethiopia’s debt sustainability will be repeated as other countries become debt distressed.”

A World Bank representative responded to a question regarding the paper by saying, “We generally don’t comment on internal deliberations between the World Bank and the IMF or any of our partner institutions.”

As part of the most recent review of the Fund’s loan program, Ethiopian State Finance Minister Eyob Tekalign told Reuters that the DSA had just been reviewed by IMF and World Bank teams and that the status had not changed significantly.

Without providing further details, an IMF representative acknowledged that its officials travelled to Ethiopia in November for the second review of the Fund’s loan program and added that every review incorporates an update to the DSA. Regarding the memo, the spokeswoman remained silent.

A request for comment from Pinto and Gill was not answered. There has been a tense confrontation between Ethiopian officials and bondholders.

The main point of contention is whether, as bondholders contend, Ethiopia is experiencing a liquidity shortage that may be resolved by rescheduling debt or if it is experiencing longer-term financial issues that necessitate haircuts, or debt write-downs.

According to the DSA, certain statistics on exports indicated pressures on both liquidity and solvency.

It was reported in October that the DSA indicated a solvency problem and that writedowns were inevitable. Investors have criticised a government proposal that suggests an 18% haircut in addition to rejecting the evaluation.

Musings From Abroad

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

Published

5 days 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.