Musings From Abroad

Putin sends Swahili-speaking envoy to Kenya

Published

4 months ago

August 21, 2024

Vsevolod Tkachenko, a seasoned diplomat with more than 40 years of experience, has been named by Russian President, Vladimir Putin, as Russia’s new ambassador to Kenya.

The move is the most recent indication of Moscow’s interest in the East African sub-region with Kenya being strategic to the diplomatic move and also home to the United Nation’s sole southern hemisphere headquarters.

Speaking Kiswahili, which is widely spoken throughout the Great Lakes region and is one of Tanzania’s and Kenya’s official languages, Mr Tkachenko speaks it fluently.

In June, Russian official media published an earlier dispatch that listed him as the new envoy to Ethiopia and the African Union. He will also assume the customary responsibilities of Russia’s permanent representative to the UN in Nairobi, according to the latest dispatch sent on Tuesday.

Dmitry Maksimychev, who has held the position since 2018, is replaced by Mr. Tkachenko. Mr. Tkachenko has been the director of the Africa Department of the Russian Foreign Ministry since 2020, prior to his appointment.

Mr Tkachenko started his diplomatic career in East Africa in the 1980s, receiving postings in Kampala and Harare. He is a graduate of the Moscow State Institute of International Relations.

His nomination takes place at a time when Moscow is vigorously re-establishing relations with African nations, but it is also facing opposition from the West, particularly the US.

Specifically, Russia faced criticism for its invasion of Ukraine in February 2022, a move strongly denounced at the time by the West and allies like Kenya.

Later, Kenya changed its position, endorsing peaceful methods of settlement and assisting the African Union’s efforts to arbitrate the dispute last year.

These initiatives, spearheaded by African Union Chairperson Azali Assoumani of Comoros and President Cyril Ramaphosa of South Africa, failed.

The new ambassador’s appointment takes place concurrently with Nairobi’s appointment of Peter Mathuki as its new envoy to Moscow.

Because of claims that he was corrupt whilst leading the East African Community (EAC), Dr. Mathuki, the former secretary-general of the organisation, has come under more and more criticism.

The embezzlement of a $6.6 million peace fund allocation, intimidation, and reassignment of secretariat staff placed Mathuki in the focus of controversy. Nevertheless, despite prior threats from MPs to impeach him, he remained innocent and was never officially removed from office by the East African Legislative Assembly (EALA).

Nevertheless, after being nominated during the 21st Ordinary Summit of EAC Heads of State in March 2021, he became the first secretary-general of the EAC to be recalled by his government before the end of his five-year term.

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Musings From Abroad

World Bank doubts Ethiopia-IMF debt assessment

Published

14 hours 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

4 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.