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

Published

8 months 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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Nigeria received $1bn tax income from Shell in 2023

Published

7 hours ago

May 8, 2024

Ifeoluwa Dada

Shell Nigeria, a multinational oil company, claims that through the operations of Shell Petroleum Development Company of Nigeria Limited and Shell Nigeria Exploration and Production Company of Nigeria Limited, it exclusively paid $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

According to the numbers released in the recently released 2023 Shell Briefing Notes, SNEPCo remitted $649 million, while the SPDC paid $442 million.

Similar payments made by the two firms in 2022 totalled $1.36 billion, according to a statement from Abimbola Essien-Nelson, the company’s manager of media relations.

“These payments are Shell exclusive and do not include those made by our partners,” said SPDC Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

Okunbor explained, “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

He continued by saying that Shell has been an investor in Nigeria for more than 60 years and that the Briefing Notes provide an update on the state of the companies’ operations in Nigeria for 2023, including SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power.

He claimed that the studies demonstrated how the businesses kept driving advancement, collaborating closely with communities and stakeholders to support socio-economic growth and offer more affordable, environmentally friendly energy options.

“It is important to emphasise that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses. Our collective focus remains on delivery of safe operations and care for our people,” Okunbor maintained.

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Zimbabwe’s new gold-backed currency now official unit of exchange

Published

20 hours ago

May 7, 2024

Ifeoluwa Dada

Zimbabwe’s Treasury says that the newly introduced gold-backed currency is the official unit of exchange for transactions. It also stated on Tuesday that laws requiring businesses to utilize the official rate would be released soon.

The Zimbabwe Gold (ZiG) has been stable on the official market since its inception in early April, but it has had a shaky start on the black market, where dealers are demanding a premium of 65% of the official rate to purchase dollars.

Additionally, some stores are charging customers who pay in the new currency—while the ZiG is being rejected by informal traders—a premium over the market rate, which is fixed at ZiG 13.6 per US dollar.

“To ensure orderly pricing, the Government will soon be introducing the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services,” Finance Minister Mthuli Ncube said in a statement.

Since the ZiG’s inception, the government has been working to keep it afloat; this month, officials launched a campaign against unlicensed foreign exchange dealers.

Zimbabwe, located in southern Africa, abandoned the Zim dollar last month after it lost 70% of its value since the beginning of the year. This is the country’s fourth effort to introduce a local currency in ten years.