President Hichilema Commends World Bank Support For Economic Restoration Programme

President Hakainde Hichilema has commended the World Bank Group for its continued support to Zambia’s economic restoration programme, including its backing in Zambia’s quest for a debt restructuring deal with the International Monetary Fund (IMF).

The President’s comments came during a visit by the World Bank’s Managing Director Anshula Kent to State House on Monday. In his speech he reiterated that his government had been elected by the Zambian people to reform the nation’s economy and that was precisely what he was setting out to do.

“We appreciate your support in our debt restructuring programme which is very important to us, we came into office on the ticket of bringing change, and people took this decision because they want the economy to be restructured in order to bring development,” Mr Hichilema said.

The President went on to cite the provision of free primary and secondary education, as well as the promotion of skills development programs, as ways in which the government was working to increase employment opportunities and better people’s lives.

HH expressed that the government is committed to delivering an expanded economy that takes into account people’s social and developmental needs. However, for this to be achieved, he said, the government must first tackle the high burden of debt which was built up under the previous administration.

“The current debt level is choking, if nothing else is done to address it, it has the potential to affect our economic agenda, that is why we need your support in our debt restructuring programme,” the president told Ms Kent.

The World Bank MD responded by saying her organisation fully supported Zambia’s bid to agree a debt sustainability programme with the IMF and that the World Bank had been pleased with the government’s work to reform Zambia’s economy so far.

“We appreciate the collaboration that we have with Zambia, and will support your efforts to improve the economy of the country and the whole process that you are doing to restructure it,” she said.

Since taking office the New Dawn government has already made strong progress in addressing the country’s debt burden. In December 2021, it negotiated a staff-level agreement with the IMF for a three-year, $1.4 billion extended credit facility, with a full debt restructuring deal expected to be finalised by the end of 2022.

The government has also been successful in convincing China – Zambia’s largest creditor – to co-chair its international creditor committee. The East Asian powerhouse has since been highly vocal in calling for an expedited IMF deal, as well as coordinating with other creditors to ensure a more manageable debt burden for Zambia.

By renegotiating the country’s debts, the government will in turn free up more funds in the budget for social services such as schools and hospitals, as well as infrastructure projects like roads. It will also increase confidence among international investors, which will in time translate to increased investment and employment opportunities.