Zambia Finance Chief Urges Struggling Nations to Rework Debts

Situmbeko Musokotwane, the Minister of Finance, has urged other African nations experiencing debt-related woes to act quickly and take full advantage of the G20 Common Framework for Debt Relief.

“I would encourage my colleagues from the other African countries not to hesitate but to come forth and get their problems solved,” he said in Washington. “This is the only viable option as of now that is available for countries to resolve their debt unsustainability.”

Musokotwane made the comments at the IMF's annual meeting in the US. While Zambia was the first African nation to default on its loans during the Covid-19 pandemic, it has since stabilised its economy and benefitted significantly from the stimulus and market confidence provided by an IMF loan.

In the months surrounding the IMF's $1.3 billion dollar credit extension, the New Dawn government led a remarkable recovery for Zambia's economy. In September, the Zambian kwacha was the world's best-performing currency against the US dollar. Meanwhile, the government continues to tackle the inflation crisis it inherited, with rates having halved since August 2021.

Even following the global financial difficulties of this year, the IMF has cut its forecast for worldwide growth in 2023. The IMF is particularly concerned that global measures to curb inflation may add risk to the global economy. The Zambian economy, however, is still expected to grow by approximately 4%.

The resilience of the US economy is still expected to be a source of strength for the global economy. Consequently, President Hichilema is keen to boost cooperation between the two nations in order to strengthen Zambia's position in the global economy. This week a two-day business summit was held in Lusaka in order to attract American investors to the country.