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.

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. [...]

New: Sign up for real-time alerts and be notified of new editions!  

Once registered, you will be notified by a short message on your computer or mobile phone as soon as a new edition of our publication or an alert is published. Stay informed anytime, anywhere!