Zambia Says Delayed Debt Deal Hurts Foreign Investments

Delays to reach a deal with creditors on how to restructure Zambia’s nearly $19 billion in foreign currency debt is hurting the arrival of much needed foreign investments in Africa’s second top copper and cobalt producer, says finance minister Situmbeko Musokotwane.

Zambia’s creditors, including China and several bondholders, have been engaged in sluggish talks since 2020 and the delayed deal is now threatening the country’s chances to access the entire $1.3B rescue loan provided by the IMF last year.

“The uncertainty created by the protracted restructuring process has put pressure on our currency… despite Zambia’s vast natural resources and improved business climate,” he says in a note. “Debt relief is urgently needed for Zambia to maintain its trajectory of economic recovery and growth.”