President Hichilema Confident That Debt Restructuring Agreement Will Be Reached

Following his visit to Washington for the US-Africa Summit, President Hakainde Hichilema has expressed his confidence that a deal to restructure the country’s current debt will be met. 

Zambia defaulted on its sovereign debt at the start of the pandemic in 2020. 

However, in August the International Monetary Fund approved a $1.3 billion, three-year loan programme to help the country restructure its debt. 

At the end of June, the New Dawn government announced that its debt stood at $14.87 billion. 

Last week, the IMF urged Zambia to meet a restructuring deal with its international creditors as soon as possible as it would be formally assessing its debt issues in the spring next year. 

Allison Holland, the IMF’s Zambia mission chief, said, "Achieving timely restructuring agreements with external creditors is essential to secure the expected benefits of the Fund-supported program.”

President Hakainde Hichilema met with the IMF in Washington last week. 

Although the talks were successful, any deals are yet to be concluded with other countries on the board needing more time. 

The president has encouraged those countries to act swiftly as delays can potentially increase the country’s debt.

He also explained that going forward Zambia would only borrow money from international institutions, such as the IMF and World Bank, that will create jobs and grow the economy. 

The news comes as the president confirms a US$150 million mining investment with KoBold metals. 

Photo: Reuters/Yuri Gripas