Africa-Press – Zambia. In a significant stride towards economic stability, Zambia has successfully negotiated a pivotal debt restructuring agreement with two of its major creditors, China and India.
President Hakainde Hichilema announced this breakthrough during the Nc’wala Traditional Ceremony for the Ngoni people in Chipata District. This landmark deal marks a crucial milestone in Zambia’s journey towards financial recovery, following the country’s historic default on foreign debts in November 2020.
The agreement with China and India, Zambia’s remaining official creditors, offers a glimmer of hope amidst the nation’s financial distress. Economist Lubinda Habazoka, also a lecturer at the University of Zambia, hailed the development as a much-needed relief for Zambia’s foreign debt servicing program.
He urged private lenders to follow suit and engage in debt restructuring negotiations to alleviate Zambia’s financial burden further. Similarly, economist Emmanuel Zulu, a Civil Society Debt Alliance member, emphasized the potential positive impact of the deal on Zambia’s credit rating.
He noted that the agreement sets the stage for Zambia to seek financial assistance from institutions like the International Monetary Fund (IMF). President Hichilema affirmed the government’s commitment to concluding negotiations with private creditors shortly.
He outlined key infrastructure projects, including road developments in Lundazi-Chama, Chipata-Vubwi, and Katete-Chanida, which are set to receive funding from the resources unlocked through debt restructuring.
Emphasizing national unity, President Hichilema called on all stakeholders, including the opposition, to collaborate in advancing Zambia’s development agenda.
As Zambia moves forward with its broader financial strategy, the successful debt restructuring deal with China and India not only provides immediate relief but also sets a precedent for international financial cooperation.
With renewed optimism and concerted efforts, Zambia aims to navigate through economic challenges and realize its developmental aspirations in the coming years.
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