President Hichilema says turning around economy, despite empty coffers

President Hakainde Hichilema said on Thursday that his new government was working hard to restore Zambia's reputation and trustworthiness after inheriting a cash-strapped and debt-ridden economy. 

Previous administrations had failed to unlock bailouts in difficult discussions with creditors, and Zambia became Africa's first defaulter during the Covid epidemic in 2020. 

However, Zambia received a $1.4 billion, three-year credit line from the International Monetary Fund (IMF) in December, barely four months after Hichilema won historic elections in his sixth attempt.

He told AFP in Johannesburg that the transaction demonstrated that the copper-dependent economy was finally beginning to improve. 

According to official estimates, inflation is currently at 15.1 percent, the lowest in over two years, and the native kwacha currency has strengthened for the first time in 17 years.

Under his predecessor, Edgar Lungu, Zambia's external debt ballooned to $14.7 billion.

"The debt crisis is one that would have sent a new leadership into a crisis" but "we went on to manage that default quickly," said President Hichilema.

He said previous governments had tried "for seven, 10 years" to enter into an agreement with the IMF, yet his team had concluded it within a few months.

It was about "credibility, seriousness, walking the talk, there's no question about that," he said.