This isn’t right. Africa needs the West as the West is Africa’s biggest lender.
Africans need lenient debt payment schedules as the Fed raises interest rates
The West is Africa’s biggest lender because they were the only option for the majority of our modern existence.
Our crooked political class eats good off those Western loans, but do they really help anybody in Africa most of the time?
China is only going to increase their African investment, Saudi Arabia is only going to increase their African investments, Turkey and Russia are factors in Africa now.
The Western states that Africa relied on for loans are about to start having to worry about their own internal issues and austerity crises.
Mark my words in the next 10 years African nations are about to start running off again and defaulting on certain Western debt while paying their Chinese debts and whatever other countries they still think are important enough to pay.
Read this
Since the start of the pandemic only two African countries have defaulted on their sovereign debt, in large part because of remedial action by multilaterals and DFIs. But the potential for default continues to grow. Robert Besseling, CEO of PANGEA-RISK, looks at possible African state default...
www.uxolo.com
Eurobonds at higher non-payment risk
Eurobonds are not the only financial obligations for African countries, which will need to make a total of $185 billion in loan repayments between 2022 and 2024. Most African states have borrowed commercially from banks and export credit agencies, bilaterally from other governments, concessionally from development banks or multilateral financial institutions, or from Chinese state-controlled entities. However, a default event is more likely to occur on a Eurobond tranche payment or capital repayment, than on any other form of obligation.
Zambia has continued to make payments to the World Bank, some banks and ECAs, and Chinese entities, even while ceasing to pay interest due on its sole external bond. Even though Eurobond structures may not always be more onerous in terms of servicing cost, they are complex to restructure, while the broader socioeconomic and political implications of stopping or delaying payments to China or development banks are often far more serious.
Lol the Europeans are already worried that Africa isn’t going to pay them on their bonds.
It’s deeper than money at this point, Africans don’t like the West and now we have a generation of leaders across Africa that don’t like the West deep down and have a reliable ally in China.
These Africa leaders are talking big shyt to their Western counterparts now, this is a new world, we’re living in the Chinese century and but Africa knows we got next.
These cacs can’t talk down to us anymore, we don’t have to be their vassals anymore.