Finance

HARARE (Capital Markets in Africa) – The collateral for African Export-Import Bank’s $500 million loan to Zimbabwe is a mine that hasn’t been dug yet, people familiar with the matter said. The loan, which will be paid over four years when production starts, is backed by a mine that Great Dyke Investments, a venture between Russian investors and the Zimbabwean military, plans to build at a cost of $4 billion, the people said. The mine,…

HARARE (Capital Markets in Africa) – Vedanta Resources Ltd. is learning the hard way that when it comes to Zambia’s copper-mining industry, history tends to repeat itself. Fifty years ago, Zambia’s first post-independence leader Kenneth Kaundanationalized mines owned by Anglo American Plc and Roan Selection Trust to rally his political supporters. Now populist President Edgar Lungu is taking legal steps to take over the operations of Vedanta’s Konkola Copper Mines, alleging the unit lied about expansion plans and cheated on taxes. With…

LAGOS (Capital Markets in Afrioca) – China blamed Washington for wrecking trade talks and insisted the U.S. must alter its “wrong practices” before negotiations can resume, leaving the next move to President Donald Trump as financial markets slump amid prospects for a prolonged dispute. “China’s stance on the talks has been clear — if the U.S. wants to resume talks, they should show sincerity and correct their wrong practices,” ministry spokesman Gao Feng said in Beijing on Thursday. “Only…

LAGOS (Capital Markets in Africa) – Saudi Arabia and other key producers in OPEC signaled their intention to keep oil supplies constrained for the rest of the year, while pledging to prevent any genuine shortages. It was less clear how far Russia, their main partner in the wider OPEC+ producers’ coalition, shared that view. While most nations at a meeting in the kingdom on Sunday supported extending production cuts to the end of 2019, Russian…

NEW YORK (Capital Markets in Africa) – Benchmark Treasuries enter the coming week with yields plumbing their 2019 lows, leaving bond bulls emboldened as the standoff between the U.S. and China drags on. With a trade deal between the world’s two largest economies moving further out of view just as global economic growth is ebbing, and political angst building in Europe, Treasuries are exerting a magnetic pull for investors seeking safety. Short-term yields are hovering at the lowest in…

NEW YORK (Capital Markets in Africa) – It’s the biggest pile of debt in the world — the $15.9 trillionU.S. Treasuries market. It’s been built with the help of foreign central banks and investors, who have clamored to buy U.S. government bonds through good times and bad. But what happens if their appetite wanes? Both China and Japan — the biggest foreign owners of Treasuries — have pared their holdings from the record levels of…

LAGOS (Capital Markets in Africa) – Nigeria is a much more important country than most people in the U.S. probably realize. With more than 190 million people, it’s Africa’s largest country by far (Ethiopia, the second-largest, has a little more than half as many). And with a fertility rate of about 5.5 children per woman, among the world’s highest, Nigeria is only going to grow in importance — by the century’s end, the country is projected to…