12 °c
London
Friday, September 29, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

China Sees Mozambique As A ‘Rough Diamond’ Amidst Debt Crisis

FurtherAfrica by FurtherAfrica
May 19, 2016
in Africa, Diplomacy, Donors, Economy, Gas, Mozambique, Natural Resources
Reading Time: 2 mins read
0 0
0

Mozambique’s mounting debt crisis that has see western donors cut their funding to the South-East African nation has pushed it to seek closer ties with China, which through state-owned China Daily termed the gas producing nation as a “rough diamond” and a “brother”.

A fall in commodity prices has left the coal and gas producer exposed with it debt levels (compared to GDP) rising from just 42 percent a years ago to nearly 80 percent.

The discovery of hidden loans amounting to over $1.1 billion in April by the International Monetary Fund (IMF) has further jolted western investors and donors who have reacted swiftly by holding back their funds from the country.

Other previously unacknowledged loans have since been revealed, bringing Mozambique’s surprise debt toll to at least $2.32 billion, according to Chatham House.

The country’s total public debt currently stand at $11.64 billion, of which $9.85 billion is owed to foreign investors, according to Finance Minister Adriano Afonso Maleiane

The cash-strapped nation has said it won’t be able to honor a $178 million debt-interest repayment due in May, pushing yield on its Eurobonds to a record high, Bloomberg report.

In the wake of these revelations rating agencies have downgraded Mozambique.

Meanwhile, Mozambique’s President Filipe Nyusi is currently on a charm offensive week-long visit to Beijing, China, with other high ranking government officials, to try and cement ties with the Asian giant after fruitless visits to Brussels and Washington, DW reported.

“I want to point out that China is one of our most important economic partners,” Nyusi said in the eastern province of Jiangsu where he praised trade relations with Beijing.

A meeting with Chinese President Xi Jinping is scheduled in the coming days.

China pledged to extend a $5 billion in soft loans in two years to the South-East African nation as a “priority partner”, during the Forum on China-Africa Cooperation (FOCAC) in South Africa in December 2015, where Xi pledged up to $60 billion to the African continent in the form of soft loans and development aid.

China has previously engaged in big construction projects Mozambique, as it has done in many other African countries. Some of the projects in the nation include a power line between the provinces of Zambezia and Nampula in the north worth $400 million, Streets, power lines and railway tracks.

Even as the debt crisis unfolds, the Chinese government signed a grant on May 5, worth $16 million for Mozambique to buy 80 buses for public transport and to dig 200 boreholes for drinking water.

Some analysts have predicted that this show of willingness by Beijing to step in and support its “brother” in crisis will increase its influence in the country’s vast coal and gas reserves that are yet be tapped, Global Construction Review reported.

Source: AFKInsider

Related

Tags: africaBankingCoalcommunicationsDiplomacyDonorsEconomyFDIFinanceGasgovernmentindustry and commerceInfrastructureMozambiqueNatural ResourcesoilsadcTrade
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

The Forbes Billionaires’ list: Africa’s richest people 2022
Private Equity

European Bank for Reconstruction and Development backs MC IV Fund

by Africa Global Funds
September 29, 2023
Finance

UBS near settlement in Credit Suisse US$1.5B Mozambique tuna bond

by FurtherAfrica
September 29, 2023
Gender

Empower women and youth in the digital agriculture era

by Farmers Review Africa
September 29, 2023
Airline

African airlines to meet in Angola

by FurtherAfrica
September 29, 2023
Economy

Mozambique dividend revenues doubled in H1

by 360 Mozambique
September 29, 2023
Mozambique eVisa
 
MozParks

Translate this page

Read the Latest

The Forbes Billionaires’ list: Africa’s richest people 2022
Private Equity

European Bank for Reconstruction and Development backs MC IV Fund

by Africa Global Funds
September 29, 2023
0

The European Bank for Reconstruction and Development (EBRD), a multilateral bank that promotes the development of the private sector and...

Read more

UBS near settlement in Credit Suisse US$1.5B Mozambique tuna bond

September 29, 2023

Empower women and youth in the digital agriculture era

September 29, 2023

African airlines to meet in Angola

September 29, 2023

Mozambique dividend revenues doubled in H1

September 29, 2023

FurtherAfrica Partners Network

The Exchange Farmers Review Africa 360 Mozambique
TechGist Africa Energy Capital & Power Club of Mozambique
Taarifa Rwanda Web3Africa See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa  

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 107.3K other subscribers
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?