Chad’s Cash-Cows Will Help Pay Off $100 Million Debt to Angola
A boy tends to his cattle in rural Tanzania. Credit: Anonymous
By Julian Mok
Lexington— Chad has resorted to an unorthodox currency to repay its debt to African neighbor Angola: cattle. The bovine-rich country is slated to repay $100 million in debt with cattle over a period of 10 years. First proposed, this agreement will endow Angola with much needed livestock while Chad can take a step towards ridding itself of massive debts.
Chad has historically struggled with massive debts that have crippled economic stability and sustainable development. Heavy dependence on oil revenue has left Chad vulnerable to the volatility of world market prices; oil made up 60% of its exports in 2017.
In 2014, the country was dealt a heavy blow when oil prices fell sharply. As revenues decreased, public spending contracted and debts began to pile up, particularly to neighboring countries like Angola.
Like Chad, Angola is an oil-rich country. 90% of its foreign exchange is from oil, but many of its other economic sectors have been left behind. In addition to oil dependence, the country has not practiced sustainable farming practices, leaving pastures over-grazed and jumpstarting deforestation and desertification.
Map of Chad. Photo by Wikimedia Commons
Map of Angola. Photo by Wikimedia Commons
Droughts have blitzed cattle populations, which has disproportionately affected traditional pastoralists. Commercial farms in Angola have been largely insulated from the droughts that have hit the southern region because they occupy the most fertile lands.
In fact, 66.7% of the most fertile land is owned by 46 commercial farms while the tens of thousands of pastoralists are forced to share 33.3% of the arable land, which has led to overgrazing and soil degradation. Angolan cattle depend on natural pasture grazing, which makes Angolan beef highly-prized but also leaves them susceptible to swings in climate.
Angola is semi-arid with cyclical droughts. The current drought has been extremely devastating, leaving cattle thirsty, hungry and dying and forcing farmers and their families to go to bed hungry.
Struggling Angolan families are forced to eat lombi, a wild green plant that is normally eaten by animals. When consumed by humans they cause stomach aches and diarrhea, but there’s nothing else to eat in the vacuum of hunger and poverty that has consumed the farmers in southern Angola.
Cattle represent a vital part of the diverse communities throughout the entire African continent as a source of nutritious animal products, income, fuel and nitrogen-rich manure.
Diverse bovine genetics have contributed to robust organisms that can thrive in a wide range of climates. As a result, cattle have become a valuable part of African life. In fact, as part of the Chad-Angola debt repayment agreement, each cattle will be valued at $1,333.
A total of 75,000 cattle will be shipped to Angola in various installments over a 10-year period.
The first shipment of 1,000 has already been accepted – Angola is awaiting the next shipment of 3,500 cattle which is expected by the end of March. It is unclear whether the cattle will be used for commercial purposes or traditional pastoralism.