Related News

UKEF supports €415mn Angolan water infrastructure project

Kuke calls on Polish exporters to tap opportunities in Africa

Angola lands jumbo ECA-backed StanChart loan for solar infrastructure

Deutsche Bank and ATI team up on Angola road project

Poland eyes Africa opportunity in Angola social loan

Belgian export credit agency ONDD has resumed cover for medium and long-term transactions with the private sector in Angola. The cover ceiling for Angola amounts to €
120mn while the premium category remains unchanged (category 7 out of 7).

 

However, this only applies to highly profitable projects, which have priority for the economic development of the country and which are important for the Belgian economy.

 

After a 27-year civil war, a peace treaty was finally signed in 2002. Since then, Angola, the second African oil-producing country, has recorded an impressive increase in export income, thanks to the high oil price and to many new deep-water extraction projects.

 

Moreover, despite an expected growth to more than 30% in 2007, inflation is presently under control. Even if oil dependency, corruption, poverty and Aids are still considerably slowing down its development, Angola’s potential is one of the best in Africa: a huge territory, a sparse population and good prospects in the agricultural sector and diamond exports.

 

Finally, Angola repaid earlier this year the entirety of its overdue credits towards the members of the Paris Club, including ONDD. However, the problem of the high amount of late interest owed by the Angolan state remains to be settled. The absence of a definitive agreement, which is made difficult for lack of co-operation with the IMF, justifies that the risk of non-payment and the transfer risk with the public sector remain uncovered.

 

All restrictive insurance terms for export transactions with a credit duration of more than two years (medium and long-term credit) with Mali have been lifted. From now on, insurance without special requirements or restrictions is possible.

 

However, for credits with public debtors, checks should be made to see whether they are subject to possible restrictions from the IMF as regards non-concessional credits. The ceiling for these transactions has been raised to €
140mn. Within the framework of the OECD Arrangement, the premium category for medium and long-term transactions remains unchanged (category 6 out of 7).

 

While the presidential elections in April maintained political stability, the Malian economy has been in a growth phase since 2005. This goes hand in hand with good climate conditions and favourable terms of trade due to record gold prices, which compensate for the high oil barrel price.

 

Whereas the cotton industry suffers from low world prices, the gold industry partly explains the return of good economic performances and of the balance of trade surplus.

 

However, the high needs and the landlocked position of the country maintain the current account deficit, which is financed by the international creditors and donors. Their support also allows the budget deficit to be kept at a manageable level.

 

Finally, thanks to the cancellation in 2006, within the framework of the MDRI Initiative, of the multilateral debt of the IMF, the World Bank and the African Development Fund, the financial risk has decreased even further with a foreign debt that is sustainable in the medium term.

 

All restrictive insurance terms for export transactions with a credit duration of more than two years (medium and long-term credit) with Zambia have also been lifted. From now on, insurance without special requirements or restrictions is possible.

 

However, for credits with public debtors, checks should be made to see whether they are subject to possible restrictions from the IMF as regards non-concessional credits. The ceiling for these transactions has been raised to €
300mn. Within the framework of the OECD Arrangement, the premium category for medium and long-term transactions remains unchanged (category 6 out of 7).

 

Even if Zambia is still suffering from extreme poverty, as well as from a very high rate of Aids contamination, the country can henceforth rely on a stable democratic context.

 

Moreover, the government, supported by the IMF, has opted for prudent budgetary and monetary policies.

Furthermore, the payment experience is improving and Zambia benefited from two successive debt cancellations to reach a very sustainable financial position. Finally, this economy fully benefits from global growth, and especially from the Chinese demand for raw materials such as copper, the rate of which is presently at its peak. As one of the main copper exporters, Zambia is currently recording a strong growth, supported by booming foreign currency revenue.