China’s Africa Affairs Chief To Visit Zambia As IMF Talks Progress

China’s Africa affairs chief Wu Peng is set to visit Zambia next week as part of a multi-nation tour of sub-Saharan Africa.  

Mr Peng, who is the director general of the Chinese foreign ministry’s African affairs department, is currently in South Africa before embarking on the rest of his tour to Malawi, Tanzania, Senegal, Burkina Faso and Togo.

On Tuesday, he tweeted that, “I hope this trip will deepen friendly exchange and practical cooperation in various areas between China and African countries.”

The visit comes just a few weeks after President Hakainde Hichilema held a telephone conversation Chinese President Xi Jingping. The two leaders hailed the “all-weather” friendship between their nations and discussed the potential for greater cooperation in resolving Zambia’s debt crisis.  

China owns roughly one third of Zambia’s foreign debts and recently agreed to co-chair an IMF creditor committee tasked with managing the debt crisis created by the previous Patriotic Front regime.

Meanwhile, talks between the Zambian Government and the IMF are progressing, with the Fund’s Deputy Managing Director Antoinette Sayeh expected in the country later today for a two-day visit.

While in Zambia, Ms Sayeh is expected to hold high level talks with the government focused on recent economic developments, including the impact of high global oil and fertiliser prices on the Zambian economy.

The talks will also touch on progress made towards debt restructuring, which the Ministry of Finance has described as an important step towards a formal program with the IMF. In December 2021 the government secured a staff-level agreement for an extended credit facility worth $1.4 billion and is working towards securing a full debt restructuring package by the end of the year.

Tackling the debt crisis has been high up on the government’s agenda ever since Zambia defaulted on its payments in November 2020 – the first African country to do so in the coronavirus era. By the end of last year, external obligations stood at $17.27 billion.

By restructuring its debts and securing better relationships with creditors, the New Dawn government hopes to ease the burden of repayments on the country’s finances, as well as cushion the economy against further international shocks. This, in turn, will mean more money is available for public services and that international investors will once again return to Zambia, creating jobs.