Business Africa
Zambia: Economic test looms for next administration
Zambia has managed to stabilize its economy after becoming the first sovereign to default on its debt obligations during the Covid-19 pandemic
It has since negotiated restructuring deals with the majority of its creditors and successfully concluded a $1.7 billion funding program with the International Monetary Fund (IMF)
The economy is projected to expand 5% in 2026, driven by investment in copper mining and a bumper maize harvest
But risks remain
Several private commercial lenders are yet to give the country debt treatment, keeping Zambia’s borrowing costs high. Fuel price rises linked to the Iran war have jolted the central bank’s efforts to rein in inflation and a potential drought next year could stifle power generation
Mutisunge Zulu, the chief risk officer at ZANACO joins the show with analysis on tough policy choices awaiting the next administration in order to unlock job-creating growth, as the copper producer prepares to vote on August 13
Liberia bans export of unprocessed rubber
Rubber provides a livelihood for thousands of families in Liberia, but its profits largely elude producers
With the raw material exported instead of being used for manufacturing locally, the country still depends on imported tires, often second-hand
Liberia’s conundrum is a familiar case in Africa, where countries ship out rethe value chain
Energy: Red Sea blockade threatens Saudi crude exports
The crisis in the Gulf could be about to shutter another critical shipping waterway for energy supplies – the Bab el Mandeb strait
The Houthis who rule half of Yemen have announced a blockade on oil exports by Saudi Arabia
With the Strait of Hormuz effectively closed, shutting down Bab al-Mandeb as well could block 25% of the world’s oil and gas supply