Mines to pay roy­al­ties in dol­lars to shoal FX re­serves...

Zambian Business Times - - FRONT PAGE -

Min­ing com­pa­nies in Africa’s sec­ond largest cop­per pro­ducer Zam­bia, will now pay min­eral roy­al­ties di­rectly to the cen­tral bank in dol­lars, Fi­nance Min­is­ter Mar­garet Mwanakatwe said.

There has been con­cern about whether the oil-ex­porter would be able to main­tain pay­ments on its sin­gle eu­robonds due in 2029 ($336 mil­lion out­stand­ing). How­ever, Moody’s felt that le­gal is­sues were now less likely to re­sult in de­fault. Prices im­proved a lit­tle on the news, but this bond con­tin­ues to trade in a coun­try-specific man­ner.

Ghana re­ceived a credit rat­ing up­grade in Septem­ber. This fol­lowed a story of re­form since the 2016 elec­tion, ef­forts to re­alise the low­est fis­cal deficit in 14 years, and bet­ter com­mu­ni­ca­tion with the mar­kets. This was one of only two rat­ing up­grades for the con­ti­nent in 2018. Mean­while five other African coun­tries have been down­graded in 2018 ( Zam­bia, Kenya, An­gola, Tu­nisia and Gabon).

NB This is not in­vest­ment ad­vice. This is for in­for­ma­tional pur­poses.

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