running story
Debt diplomacy
Extraordinary China-Africa Summit on Solidarity against Covid-19, June 17 2020. © Ding Haitao/Xinhua News Agency/Newscom/MaxPPP
AFRICA

Debt diplomacy

Because the fight to contain it has involved the use of public funds, the Covid-19 pandemic has led to an explosion of debt throughout Africa, forcing countries to seek a moratorium from the G20 and bring in consultants to help them negotiate with their sovereign, private sector and institutional creditors. In the West, the growth of African countries' debt has led to fierce competition between private and public sector creditors to obtain repayment of their debts. China is also involved but has shown little inclination so far to reschedule African countries' debts.

Extraordinary China-Africa Summit on Solidarity against Covid-19, June 17 2020. © Ding Haitao/Xinhua News Agency/Newscom/MaxPPP
CONGO Politics 18/05/2022
Congolese Finance Minister Rigobert Roger Andely.
Congolese Finance Minister Rigobert Roger Andely. © Ministry of Finance of Congo/Twitter

Andely turns his attention to the debt of public sector companies 

After having negotiated debt agreements with the Republic of the Congo's bilateral partners and trading groups, finance and budget minister Rigobert Roger Andely has turned his attention to state-owned companies. First in line will be the all-powerful Société Nationale des Pétroles du Congo, which has contracted debts totalling more than $2bn. [...]

TUNISIA Diplomacy 02/02/2022
Emmanuel Moulin, head of the French Treasury and president of the Club de Paris.
Emmanuel Moulin, head of the French Treasury and president of the Club de Paris. © Vincent Isore/IP3 Press/MaxPPP

Paris sends its Treasury chief Emmanuel Moulin on special mission to Tunis 

The French Treasury head has reiterated France's support for the reforms Tunis must undertake in order to secure IMF loans. Moulin also chairs the Paris Club of international creditors, and while he did not travel in that capacity, the restructuring of Tunisia's debt seems to be on the cards. [...]

SpotlightAFRICA CHINA Politics 19/01/2021
On December 30, 2020, French President Emmanuel Macron took part in a videoconference bringing together his Chinese counterpart Xi Jinping and European representatives.
On December 30, 2020, French President Emmanuel Macron took part in a videoconference bringing together his Chinese counterpart Xi Jinping and European representatives. © Sébastien Nogier/ Pool/EFE/Newscom/MaxPPP

Macron and Biden want to force China to play ball on African debt 

Following the explosion in African countries' public debt caused by Covid, the European Union and the United States want to force China to take part in the collective rescheduling process organised by the G20 and the Paris Club. [...]

DRC Mining 02/10/2020
A copper and cobalt mine operated by Sicomines in the DRC.
A copper and cobalt mine operated by Sicomines in the DRC. © JP/DH/Reuters

Sicomines: the EITI aims to find out if the DRC is able to pay its debt to China 

The Extractive Industries Transparency Initiative (EITI) will try to quickly discover if the mineral deposits mined by Sino-Congolese joint venture Sicomines are sufficent to enable the DRC to repay China's investment costs in the venture or if China should be given free access to other sites, as the agreement at the origin of the project provides. [...]

LEBANON CONGO Business 19/08/2020
Nabih Berri, Lebanon's parliament speaker, has failed in his mediation between the Congolese president's office and the Lebanese CEO of Commisimpex, Mohsen Hojeij.
Nabih Berri, Lebanon's parliament speaker, has failed in his mediation between the Congolese president's office and the Lebanese CEO of Commisimpex, Mohsen Hojeij. © REUTERS-Mohamed Azakir

Commisimpex: godfather to Lebanon's Shiites fails to reconcile Hojeij and Sassou 

The secret negotiations between Lebanese businessman Mohsen Hojeij and the Congolese president's office over their €1.2bn debt dispute were facilitated by the Speaker of the Lebanese Parliament, Nabih Berri. Now weeks into the talks, revealed by Africa Intelligence, neither side is willing to budge. [...]

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