Zambia Requests UN’s Assistance with Debt Restructuring Talks

Zambia’s President Hakainde Hichilema has contacted the UN Secretary-General Antonio Guterres to help arrange a solution to the stagnation of the proposed restructuring of Zambia’s debt.

President Hichilema held a closed-door meeting in Doha with the UN Secretary-General. Whilst the details of what was discussed have yet to be revealed, Mr. Hichilema confirmed that he was frustrated with debt restructuring talks failing to have “moved fast enough” when he spoke to ZNBC TV. 

Speaking to ZNBC, President Hichilema clarified that he had “discussed with the UN Secretary General to assist, to push for the conclusion of the debt restructuring”.

Zambia is looking to rework $12.8 billion of loans within the G-20 common framework. Zambia became the first African country to default on sovereign debt as a result of the COVID pandemic in November 2020. Since then its economy has steadily grown, but debt is impeding growth and driving inflation.

Zambian economists were optimistic when international discussion took place in January and February, after the IMF’s managing director Kristalina Georgieva visited Zambia.

When it was recommended that China participate in IMF debt restructuring arrangements, China suggested it was the responsibility of Western creditors to resolve Zambia’s debt. The World Bank and U.S. Secretary General Janet Yellen both pointed out that China was Zambia’s single biggest debt creditor at 30% of debt. Since February no progress has been reported to the public.