Mozambique Debt Woes an Eye-Opener, Standard Chartered Says
- Secret loans will lead to more scrutiny, Razia Khan says
- Mozambique unlikely to cause contagion, Moody’s says
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Mozambique’s hidden debt and default threat have opened investors’ eyes to what can go wrong if they don’t ask enough questions, according to Standard Chartered head of Africa research, Razia Khan.
“The additional degree of scrutiny, the greater transparency, it’s not necessarily a bad wake-up call that you do need to do the due diligence and you do need to scrutinize greatly all of the numbers you see,” Khan said Wednesday in an interview at the African Development Bank’s annual meetings in the Zambian capital, Lusaka. “There isn’t necessarily an expectation that the same situation will be replicated elsewhere in Africa.”