Zambia’s creditors are close to agreeing to a long-awaited debt restructuring deal that will allow the International Monetary Fund to disburse $188 million to the distressed African nation.
“We’ve had initial agreements to provide financing assurances so the IMF can proceed with providing financing with Zambia,” Abebe Aemro Selassie, director of the fund’s African Department, said during a panel discussion at the Bloomberg New Economy Gateway Africa forum in Marrakesh, Morocco, on Tuesday.
The fund and Zambia are having “very, very active discussions and we are very hopeful that something will come through in the next few weeks,” he said.
Read more: Zambia’s Creditors Close to Debt Restructuring Deal, IMF Says
Africa’s Blended Financing Options (June 13, 4:17 p.m.)
More than 70 low-income nations face a collective $326 billion debt burden, according to the IMF. About 15% of low-income countries are already in debt distress and another 45% face high debt vulnerabilities, and the list is growing.
African nation’s have “too much debt” and the wrong kind of obligations, Anne-Laure Kiechel, founder and chief executive officer of Global Sovereign Advisory, said at the Moroccan forum. Blended financing, with a mix of commercial and concessional loans will help countries lower the cost of finance, she said.
Risk Perception Is Unwarranted: Corporate Council on Africa (June 13, 3:31 p.m.)
The perception of risk in Africa, especially in the US, “is higher than actually warranted on the continent,” according to Florizelle Liser, president and chief executive officer of the Corporate Council on Africa.
American companies are looking for predictability, transparency and the right investor-friendly environment that will allow them to bring capital in but also take it out, Liser said.
“One of the perceptions of risks has been not making a distinction between the whole continent,” said Rajakumari Jandhyala, managing partner and founder at Yaatra Ventures. “If you’re willing to invest in Ukraine and Afghanistan, clearly you can invest in East Africa.”
Morocco Air Plans Fleet Expansion (June 13, 2:48 p.m.)
Royal Air Maroc is putting the final touches to a tender to buy new long- and medium-haul aircraft to meet an expected increase in tourist arrivals to Morocco and expand its network.
The state-owned carrier is looking to add “many new routes” around the world, Chief Executive Officer Abdelhamid Addou said in an interview at the Bloomberg New Economy Gateway Africa forum in Marrakesh, Morocco, on Tuesday. He sees Africa’s potential as particularly large and believes it should be developed by the continent’s own carriers.
The carrier has about 50 aircraft, most of which are Boeing Co. models.
Morocco Seeking Investors for Green Hydrogen Project (June 13, 2:30 p.m.)
Morocco is preparing to seek partners and investors for a much-anticipated large-scale green hydrogen project that’ll be able to export to Europe, Energy Transition Minister Leila Benali said.
“The work is nearly done,” she said at the forum. “The prime minister has announced that we will make the hydrogen offer public before the end of the year.”
Morocco is attracting growing interest from investors looking to export the green fuel to the European Union, given its geographical proximity and free trade agreement with the bloc.
Rugby Africa Calls for Greater Investment in Sport (June 13, 2:23 p.m.)
When it comes to sport, Africa’s biggest problem isn’t producing great athletes — a steady stream comes from the continent — but providing economic incentives for them to perform at home.
“The key is to bring investment back into Africa,” Herbert Mensah, president of Rugby Africa, said in an onstage interview. “The potential in Africa is massive. At the end of the day it’s all about money.”
Sports can play an important social role on the world’s youngest continent. “If you’ve got young people involved in sports, they’re not going to get up to mischief,” he said.
AFC Nears $500 Million Climate Fund (June 13, 12:03 p.m.)
AFC Capital Partners secured $300 million led by the United Nations-backed Green Climate Fund, and plans to close an initial $500 million phase of an infrastructure-resilience fund by early 2024.
The organization, part of the Lagos, Nigeria-based Africa Finance Corp., is seeking cash to address the continent’s urgent need for stronger roads and bridges, more resilient ports and irrigation to withstand extreme weather caused by climate change.
“Africa has a huge infrastructure deficit,” AFC Capital CEO Ayaan Zeinab Adam said in an interview at the Morocco forum. “We are also having to climate-proof that infrastructure.”
--With assistance from Matthew Hill, Jennifer Zabasajja, Mike Cohen, Amogelang Mbatha, Antony Sguazzin and Souhail Karam.
