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☆ Zambia's troubled debt restructuring efforts
▼ + stars: | 2023-11-21 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Yuri Gripas/File Photo Acquire Licensing RightsLONDON, Nov 21 (Reuters) - Zambia's debt restructuring has been a complex, three-year process, which suffered a serious setback on Monday when bilateral creditors, including China, effectively ordered it secure more debt relief from international funds that hold its sovereign bonds. 2020: The country requests to have its debt payments frozen under the G20-led Debt Service Suspension Initiative (DSSI) due to COVID-19. In May, Zambian President Edgar Lungu’s government hires French firm Lazard to advise on restructuring the cash-strapped southern African nation’s $11 billion worth of foreign debts. 2022: Negotiations continue with bondholders for debt relief and restructuring deals. Angry bondholders say the OCC is demanding debt relief from them that is materially higher than either Zambia's government or the International Monetary Fund deem necessary.

Persons: Yuri Gripas, Edgar Lungu’s, Lazard, Lungu’s, Hakainde Hichilema, Marc Jones, Sharon Singleton Organizations: Monetary Fund, REUTERS, Zambian, China, Export, Import Bank of China, OCC, International, Fund, Thomson Locations: Washington , U.S, China, Zambia

BEIJING (AP) — China and Zambia upgraded their relationship to a comprehensive strategic cooperative partnership on Friday, the latest move by America's chief global rival to forge deeper ties with the Global South. Chinese President Xi Jinping and his Zambian counterpart announced the agreement shortly after Xi had exchanged cordial words with another visitor, the new prime minister of Cambodia. China has in turn won access to natural resources and diplomatic support from many Global South countries on contentious votes at the U.N. and from Cambodia in China’s territorial disputes with other Southeast Asian nations in the South China Sea. Cambodian Prime Minister Hun Manet made China his first official foreign visit after succeeding his father, Hun Sen, who ruled Cambodia for 40 years and cultivated his country's close relationship with China. Xi told Hun Manet that his father had made historic contributions to bilateral ties.

Persons: Xi Jinping, Xi, ” Xi, Hakainde Hichilema, Hichilema, Nicolás Maduro, ”, Edward Chan, South Africa —, Hun Manet, Hun Sen, Hun, Alfred Wu, National University of Singapore's Lee, “, Wanqing Chen Organizations: BEIJING, Global, Zambian, Australian National University, “, United Arab, Initiative, Cambodian, U.S, Ream Naval Base, National University of Singapore's, National University of Singapore's Lee Kuan Yew, of Public, Associated Press Locations: China, Zambia, Cambodia, Africa, Southeast Asia, Latin America, U.S, Zambian, Brazil, Russia, India, South Africa, Saudi Arabia, Iran, United Arab Emirates, Argentina, Egypt, Ethiopia, Afghanistan, South China, Cambodian, Beijing, ASEAN

A shareholders' agreement is being reworked to make the commitments from both shareholders legally binding, Kabuswe added. The legal details of the agreement and reinstatement of the KCM board, would be finalised within the next three months, the minister said. The forced takeover nearly paralysed operations at the KCM and triggered protracted battles, with Vedanta mounting legal battles including approaching an arbitration court in London to recover the copper assets. The government, which seeks to triple copper output over the decade, is also searching for a new investor for Mopani Copper Mines. Reporting by Chris Mfula; Writing by Felix Njini; Editing by Olivia Kumwenda-Mtambo, David Evans, Alexandra HudsonOur Standards: The Thomson Reuters Trust Principles.

Persons: Paul Kabuswe, Kabuswe, Anil Agarwal, Edgar Lungu's, Hakainde Hichilema, Vedanta, KCM, ZCCM, Chris Mfula, Felix Njini, Olivia Kumwenda, David Evans, Alexandra Hudson Organizations: Vedanta Resources, IH, Vedanta, Mopani, Mining, Alexandra Hudson Our, Thomson Locations: Zambia, LUSAKA, KCM, ZCCM, London, Lusaka

SummarySummary Companies Mines minister says agreement with Vedanta Resources imminentVedanta says both parties want to sees mines in productionNAIROBI/LUSAKA, July 5 (Reuters) - Zambia is close to resolving a dispute with Vedanta Resources (VEDJB.UL) over its Konkola Copper Mines, with a deal over the future of the partly state-owned unit "imminent", its mines minister said. KCM has battled to attract investment since relations between Zambia and Vedanta broke down several years ago, culminating in the state's take-over of the KCM assets and forced liquidation in May 2019. The move triggering protracted legal battles, with Vedanta approaching an arbitration court in London to fight off the seizure of the copper assets. "The negotiations are advanced and an announcement is imminent," Zambia's Mines Minister Paul Kabuswe told Reuters. "We are concerned with the levels of deterioration of not only the mines but also socio-fabric of the workers," the spokesperson told Reuters.

Persons: KCM, Vedanta, Paul Kabuswe, Kabuswe, Situmbeko Musokotwane, Hakainde Hichilema, Anil Agarwal, Felix Njini, Chris Mfula, Jan Harvey Organizations: Mines, Vedanta, Vedanta Resources, Zambia's Mines, Reuters, Mining, Thomson Locations: NAIROBI, LUSAKA, Zambia, London, Africa's, Nairobi, Lusaka

☆ Zambia's bondholders see debt restructure deal in coming weeks
▼ + stars: | 2023-06-27 | by ( Marc Jones | ) www.reuters.com time to read: +3 min

LONDON, June 27 (Reuters) - Zambia's international bondholders expect to strike a debt restructuring deal with the country "in the coming weeks", a leading member said on Tuesday, a move that would draw a line under the nation's near three-year stint in default. "So I think we (bondholders) can now reach a deal in the coming weeks." Daly said that was something bondholders themselves had called for when restructuring talks became stalled last year over how much debt relief would be required. "The adjustment mechanism provides for an accelerated repayment schedule and higher interest rates if Zambia's debt carrying capacity improves from the current 'weak' classification to 'medium' classification," he said. While China has rejected writing off some of the debt altogether, bondholders could still do that, Daly added.

Persons: Hakainde, Kevin Daly, Daly, Situmbeko Musokotwane, Marc Jones, Chris Mfula, Libby George, Christina Fincher, Ed Osmond, William Maclean Organizations: International Monetary Fund, Zambian Finance, IMF, World Bank, Thomson Locations: China, Zambia, Sri Lanka, Ghana, Lusaka

☆ Zambia seals $6.3 billion debt restructuring deal
▼ + stars: | 2023-06-22 | by ( Leigh Thomas | ) www.reuters.com time to read: +3 min

"We have reached an agreement on the outline of a debt treatment, we've reached the end of the negotiation," the French official, who did not wish to be identified, told journalists. Zambia's public sector creditors agreed to reschedule $6.3 billion, including $1.3 billion in arrears, and private sector creditors are expected to do the same on the $6.8 billion owed to them, the official said. The restructuring agreement with official creditors paves the way for Zambia to receive another $188 million tranche of money from the International Monetary Fund, part of a $1.3 billion package approved in August 2022. The scale of the debt relief Zambia requires has been a concern for some of the country's main creditors. Of the $6.3 billion in debt owed to government bodies, $4.1 billion was owed specifically to Export-Import Bank of China, the French official said.

Persons: we've, Hakainde Hichilema, Emmanuel Macron's, Leigh Thomas, Susan Fenton Organizations: International Monetary Fund, Import Bank of China, Zambian, Group, Thomson Locations: Zambia, China, Beijing, France

☆ China says it will work for better solution of Zambia's debt issues
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: 1 min

BEIJING, May 19 (Reuters) - China has always taken Zambia's debt issues seriously and will jointly work for a better solution, the Chinese foreign ministry said on Friday. Wang Wenbin, a spokesperson of the ministry, made the remarks at a regular news briefing when answering a question regarding Zambian President Hakainde Hichilema saying he wants to meet with President Xi Jinping to get Zambia's debt restructuring done. Reporting by Beijing Newsroom; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

LONDON, April 21 (Reuters) - Zambia will send its first fully-formed debt restructuring plan to China and other government creditors "very soon" the government's legal advisors said, as it looks to capitalise on fresh momentum seen in high-level talks in recent days. "We are hoping to provide a restructuring proposal to the official creditors (committee) very soon," Melissa Butler at White & Case, the law firm advising Lusaka on the restructuring, told Reuters, adding that meant the "coming weeks". "We want to start talking about concrete proposals about what debt relief would look like." Zambia is hoping for more than $8 billion of debt relief and Hichilema recently warned that if the restructuring was not able to be concluded soon, it would "tarnish" the tough fiscal reform measures the government has been undertaking. Zambia's restructuring has a wider importance too.

☆ Debt Standoff Between China and U.S. Hurts Poor Countries, Zambia’s President Warns
▼ + stars: | 2023-04-10 | by ( Gabriele Steinhauser | ) www.wsj.com time to read: 1 min

LUSAKA, Zambia—Zambian President Hakainde Hichilema said China and the U.S. have a responsibility to set aside their differences and help countries such as his get the debt relief they need to avoid further damage to their economies. With finance officials from around the world gathering in Washington this week for the International Monetary Fund and World Bank biannual meetings, Mr. Hichilema’s country is emerging as a focal point of discussions on how to restructure poor nations’ debts. U.S. officials have criticized China, now the biggest government lender to the developing world, for failing to write down loans if borrowing countries such as Zambia run into trouble.

☆ Kamala Harris wraps up Ghana visit, heads to Tanzania
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

[1/2] U.S. Vice President Kamala Harris meets with women entrepreneurs during her week-long trip to Ghana, Tanzania and Zambia, in Accra, Ghana March 29, 2023. REUTERS/Francis KokorokoACCRA, March 29 (Reuters) - U.S. Vice President Kamala Harris will meet Ghanaian women entrepreneurs on Wednesday to discuss economic empowerment and leadership, her last engagement in Accra before heading to Tanzania to continue her week-long African tour. She is scheduled to leave Ghana after her roundtable with women entrepreneurs and fly to the Tanzanian commercial capital Dar es Salaam, where she will meet President Samia Suluhu Hassan on Thursday and fulfil other engagements. On Friday, she will fly to Zambia, where she will meet President Hakainde Hichilema and participate in other events. Reporting by Francis Kokoroko; Writing by Estelle Shirbon; Editing by William MacleanOur Standards: The Thomson Reuters Trust Principles.

☆ Yellen urges Zambia debt restructure after talks with China
▼ + stars: | 2023-01-24 | by ( Andrea Shalal | ) www.reuters.com time to read: +4 min

[1/6] U.S. Treasury Secretary Janet Yellen signs a guest book at the State House during her visit, in Lusaka, Zambia, January 23, 2023. REUTERS/Namukolo SiyumbwaLUSAKA, Jan 23 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Monday during a visit to Zambia that it was critically important to restructure the country's debt, and she believes progress could be made after her frank talks with key creditor China last week. Yellen added that Zambia's debt overhang was a drag on its whole economy and that China had been a barrier to resolving the southern African country's debt problem. "I specifically raised the issue with Zambia (with Chinese officials) and asked for their cooperation in trying to reach a speedy resolution. "We will continue to press for all official bilateral and private-sector creditors to meaningfully participate in debt relief for Zambia, especially China," she said.

☆ IMF chief: it's time for creditors to restructure Zambia debt
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +1 min

LUSAKA, Jan 24 (Reuters) - International Monetary Fund Managing Director Kristalina Georgieva said on Tuesday during a visit to Zambia that it was the time for the southern African country's creditors to restructure its debt as it was doing its part by implementing economic reforms. Zambia defaulted on its sovereign debt in 2020, becoming the first African country to do so during the COVID-19 pandemic. Georgieva has pushed hard for quicker movement on debt relief for countries like Zambia. On Monday at a meeting with Zambian President Hakainde Hichilema she commended his government for moving away from wasteful expenditure and said the IMF would like to work with Zambia to boost its economic growth. Reporting by Chris Mfula; Writing by Anait Miridzhanian; Editing by Olivia Kumwenda-Mtambo and Alexander WinningOur Standards: The Thomson Reuters Trust Principles.

As Africa struggles with economic headwinds caused by the COVID-19 pandemic, the war in Ukraine and, notably, Washington's own monetary policy, Africans are asking for proof the United States will stay the course this time. African countries have become collateral victims of this year's rate hikes by the U.S. Federal Reserve, aimed at curbing inflation at home. African countries are also finding it harder to access capital markets to meet their fiscal needs and refinance maturing debt. The United States, meanwhile, has largely failed to offer viable alternatives to cheap Chinese credit, officials said. One senior U.S. Treasury official said the United States had long been engaged in Africa, funding anti-HIV work and working on other health issues.

☆ Yellen says critically important to restructure Zambia debt
▼ + stars: | 2023-01-23 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

[1/2] U.S. Treasury Secretary Janet Yellen gives a speech after she visited the House of Slaves (Maison des Esclaves) at Goree Island off the coast of Dakar, Senegal January 21, 2023. REUTERS/Ngouda DioneLUSAKA, Jan 23 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Monday during a visit to Zambia that it was critically important to restructure Zambia's debt, and she believed progress could be made after her frank talks with key creditor China last week. Yellen added that Zambia's debt overhang was a drag on its whole economy and that China had been a barrier to reaching a resolution on the southern African country's debt problem. "I specifically raised the issue with Zambia (with Chinese officials) and asked for their cooperation in trying to reach a speedy resolution. She said it was also critically important for Zambia to address corruption and human rights, and create a business environment that would promote investments and trade.

☆ IMF says corruption has inflated costs of high-profile projects in Zambia
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +1 min

[1/2] The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File PhotoJOHANNESBURG, Jan 10 (Reuters) - The International Monetary Fund said on Tuesday that corruption had inflated the cost of numerous high-profile tenders and construction projects in Zambia. It added that corruption increased from 2009 to 2021 and "became particularly entrenched and institutionalized during 2016-2021." The current President, Hakainde Hichilema, was elected in August 2021, after defeating then-incumbent President Edgar Lungu. Reporting by Anait Miridzhanian and Rachel Savage; Editing by Estelle ShirbonOur Standards: The Thomson Reuters Trust Principles.

☆ Billionaire-backed KoBold Metals to invest in Zambia copper mine
▼ + stars: | 2022-12-14 | by ( ) www.reuters.com time to read: +2 min

Mingomba contains 247 million tonnes of ore with an average grade of 3.64% copper, according to KoBold. Zambian President Hakainde Hichilema wants to boost the country's copper production to 3 million tonnes a year by 2032, from around 850,000 tonnes currently. As Africa's second-largest producer of copper, Zambia is highly dependent on mining. "Our message to the world is that Zambia is here, and is open for business," Hichilema said as he announced the deal at the summit. The deal, which will grant KoBold a majority stake in Mingomba, is set to close in the first quarter of 2023.

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