Zambia Urges Negotiations for Settlement on Unresolved Debt
Zambia is still grappling with nearly $7 billion in unresolved debt, even after reaching a deal with bilateral lenders last year that addressed over $6 billion. The remaining $7 billion is owed to bondholders and commercial banks. Despite a debt restructuring deal with bondholders in October 2023, which aimed to address about $3 billion of debt, it was rejected by official creditors led by France, China, and South Africa. They argued that the terms agreed upon with bondholders did not align with the concessions Zambia secured from official lenders. Ethiopia and Ghana, closely monitoring Zambia’s situation, are next in line for debt restructuring.
Andrew Chibuye, the Country Senior Partner at PwC in Zambia, joins the discussion to provide insights into Zambia’s ongoing quest for debt relief.
In other news, trade between China and Africa reached $282 billion in 2023, marking the 15th consecutive year that Beijing has been Africa’s largest trading partner. Chinese exports to African nations increased by 7.5% to $173 billion, while imports from Africa totaled $109 billion, reflecting a 6.7% decline year on year. China’s trade surplus with Africa expanded to $64 billion in 2023.
Meanwhile, Cameroon is hosting a ‘Made in Africa’ expo, where manufacturers are exploring ways to leverage the African Continental Free Trade Area (AfCFTA) and international markets. The focus on industrialization and diversification away from raw material exports is seen as crucial for strengthening African economies in the face of global shocks caused by factors like pandemics and conflicts.
