Chinese agency gives Zimbabwe its lowest ratings on sovereign risks

by Gift Mawire

The China Export and Credit Insurance Corporation has given Zimbabwe and 26 other countries its lowest ratings on sovereign risks in its 2016 report.

The report says that government defaults and unconventional risks threaten Chinese investors when they go abroad, according to cctv.com

This year’s report raised the sovereign risk ratings for 15 countries, including Iran and Sudan.

“Political and commercial risks, strong competition in global markets and forex rate volatilities all bring uncertainties to Chinese companies which are investing overseas,” said Wang Yi, China Export & Credit Insurance Corp.

“So it is necessary for Chinese companies to deeply understand their target countries and markets, as well as to pay high attention to risk prevention and increase capability to ensure their interests abroad.”

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The cash-strapped government, reportedly spent more than 96% of its revenue on wages, but in recent times had to resort to staggering pay dates as it scraped the bottom of its coffers.

In recent weeks, widespread sporadic protests erupted in the country as a number of people spoke out against the government’s shortcomings.

The  country was brought to an abrupt standstill after the teachers, doctors and nurses went on an national strike over their unpaid June salaries two months  ago.