Africa Briefs

SA risks more ratings downgradesThe probability of South Africa being hit with further credit rating downgrades is "quite significant," deputy central bank governor Kuben Naidoo said on Tuesday while addressing a monetary policy forum in Cape Town.Fitch and S&P Global Ratings both downgraded South Africa's foreign-currency rating to speculative grade, or junk, following an abrupt cabinet reshuffle in March that saw the respected Pravin Gordhan axed as finance minister by President Jacob Zuma. – Nampa/ReutersZambia public debt unsustainableZambia's public debt is growing unsustainably, making the economy of Africa's No. 2 copper producer vulnerable to market swings and reversals in capital flows, the International Monetary Fund (IMF) said on Tuesday.Publicly guaranteed debt increased from 36% of gross domestic product at the end of 2014 to 60% at end of 2016, it said.The IMF said while the government was committed to reducing its fiscal deficit from 9% of GDP in 2016, its cash deficit would remain "elevated" as government arrears were cleared. – Nampa/ReutersBuhari asks approval for US$5.5 bln in foreign loansNigeria's President Muhammadu Buhari has sought approval from lawmakers in the upper chamber of parliament for US$5.5 billion of foreign borrowing, according to a letter read in the Senate on Tuesday.Nigeria expects a shortfall of US$7.5 billion in its record 7.44 trillion naira (US$24.33 billion) 2017 budget, which it plans to offset with foreign loans.The US$5.5 billion of external borrowing would include US$2.5 billion for plugging part of the 2017 budget deficit, and US$3 billion for refinancing maturing domestic debt with dollar borrowing, to lower costs and improve the country's debt position, the president's letter said. – Nampa/ReutersDRC orders China to stop exporting raw metalsCongo's mines minister has ordered a joint venture of Chinese investors to stop exporting raw copper and cobalt before processing because of their low value on international markets.Sinohydro Corp and China Railway Group Limited agreed to build US$3 billion worth of roads, railways and other infrastructure, with the investments to be reimbursed by earnings from its majority stake in the Sicomines project.Democratic Republic of Congo's government presented the US$6 billion deal as a model for mining investment.But mines minister Martin Kabwelulu wrote to Sicomines' director general to complain the mine was exporting mostly unprocessed copper and cobalt instead of higher value processed metals.Congo has banned exports of unprocessed copper and cobalt but has provisionally exempted companies because it lacks enough electricity to process the minerals domestically. – Nampa/Reuters

Africa Briefs

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