{"id":42070,"date":"2023-03-11T23:45:40","date_gmt":"2023-03-11T23:45:40","guid":{"rendered":"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next"},"modified":"2023-03-12T23:36:57","modified_gmt":"2023-03-12T23:36:57","slug":"g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next","title":{"rendered":"G20 Finance Summit fails to resolve Zambia\u2019s Debt relief Deal, What next?"},"content":{"rendered":"

Africa-Press – Zambia. <\/strong><\/span>The timing of the G20 finance Ministers and Central Bank governors\u2019 summit in Bengaluru, India, could not have come at a worse time for Zambia. The date of the summit coincided with the one year anniversary of Russia\u2019s invasion of Ukraine on 24 February, 2022.The Russia-Ukraine war\u2019s first anniversary diverted attention from Zambia\u2019s debt restructuring deal.<\/p>\n

The United States and the International Monetary Fund (IMF) have been pushing China for the declaration of intent by signing a non-binding Memorandum of Understanding (MOU) for Zambia. This could then trigger the IMF board approval of Zambia\u2019s bail out deal and release of the first tranche of funds for balance of payment support, thus stem the depreciation of the kwacha and restore investor confidence. Zambia has already fulfilled the IMF prior actions. But, it appears that the appeals to China have come to nothing, purely due to geopolitics and economics reasons.<\/p>\n

Prior to her departure for the G20 summit to India, the US Secretary of Treasury Janet Yellen undertook to lobby for Zambia by focusing on unblocking the debt restructuring talks. She intended to press China to speed up its debt relief for Zambia. She was very hopeful and expectant that a deal could be struck on the Zambian debt at G20 meetings.<\/p>\n

The hope and speculation that Chinese Finance Minister, Liu Kun would meet US Treasury Secretary Janet Yellen physically on the side-lines of the summit, were dashed when he joined the meeting virtually. He urged the G20 to hold a fair and objective analysis of the question of global debt and resolve it in a comprehensive and effective manner in a video address.<\/p>\n

The G20 published the Chair\u2019s (India) Summary and Outcome document. It made it very clear that the Summit had failed to resolve Zambia\u2019s debt restructuring deal and hoped that it would be quickly concluded. The statement said: \u201cWe recognize the urgency to address debt vulnerabilities in low and middle-income countries. We welcome the conclusion of debt treatment for Chad and call for a swift conclusion of the work on debt treatment for Zambia and Ethiopia.\u201d<\/p>\n

The failure by the G20 Finance Summit to produce a restructuring deal for Zambia has proved beyond any reasonable doubt that the Paris Club, the G7, the US and IMF cannot deliver the restructuring deal for Zambia on their own. China is the key to the deal. There is no way of sugar coating this fact. WHAT IS THE NEXT STEP AFTER THE G20 FLOP?<\/p>\n

It is commendable that even before the failure of the G20 talks, the Zambian government had started to engage the Chinese authorities. On the 21st February, 2023, Xinhua News Agency (New China News Agency), which is the official state news agency of the People\u2019s Republic of China, reported that Zambian Minister of Foreign Affairs and International Cooperation Stanley Kasongo Kakubo, had talked on the phone with the Chinese Foreign Minister Qin Gang on Monday 20th February, 2023. Foreign minister Gang, referred Stanley Kakubo to the 31st May, 2022 phone conversation between President Hakainde Hichilema and President Xi Jin Ping.<\/p>\n

\u201cChina is willing to work with Zambia to implement the important consensus reached by the two heads of state, enhance political mutual trust, deepen mutually beneficial cooperation, strengthen mutual support, and promote the stable and long-term development of bilateral relations\u201d, Qin Gang said. \u201cChina and Zambia should strengthen coordination and cooperation on international and regional issues, jointly oppose unilateralism, protectionism and bullying practices, and safeguard the common interests of the two countries and other developing countries.\u201d<\/p>\n

The above Chinese foreign Minister\u2019s statement is a loaded statement. The Zambian authorities should not read the statement superficially, but rather decipher it in order to correctly interpret it. The statement is couched in diplomatic language but has a special message for Zambia with regard to what sort of relationship China wants to have with the New Dawn government as agreed upon by the two Presidents.<\/p>\n

Zambian authorities should be aware that phone calls and contacts at a low level will not unlock the debt deal. This is a high stakes geopolitical and economical game that is taking place. There is a need for a well thought out strategy that considers the various variables at play.<\/p>\n

Zambia should engage China on the basis that it is a long time and all weather friend of China. The current stage that the debt restructuring talks have reached is such that any engagement with China should be based on lobbying and not negotiations. The time for negotiations is after the MOU. Further, the personnel that should be involved in executing the strategy should be the following: experienced diplomats led by the Ministry of foreign affairs, private sector communications strategists in conjunction with the Ministry of information, and not the Ministry of Finance and development planning technocrats.<\/p>\n

The objective of the lobbying is simple. It is to persuade China to drop the two demands delaying the deal, in Zambia\u2019s particular circumstances, and sign the non-binding Memorandum of Understanding.<\/p>\n

Zambia should employ two pronged and parallel strategies. The first should be an aggressive communications strategy targeted at the Chinese English media such as Global times, Xinhua News Agency, China Global Television Network (CGTN) and South China Morning Post. The use of proxies for interviews, statements, articles should be part of the strategy. The messaging should, among other things, be aimed at removing the perception that Zambia has changed its non-aligned policy of the founding fathers. There is need for clarity, and reiteration that Zambia\u2019s foreign policy has remained the same. As a small nation, the pursuit of strategic ambiguity or taking sides is not advisable.<\/p>\n

The second strategy should be back channel diplomacy. This entails behind the scenes lobbying of China using experienced, respected current and former Zambian diplomats, who the Chinese authorities can trust. The diplomats should have sound knowledge of geopolitics and the Chinese culture. The objective of the diplomacy is to enhance what the Chinese call \u201cGuanxi\u201d between the two nations, which is currently perceived to be at risk. The diplomatic overtures could culminate in President Hakainde Hichilema visiting China in the nearest future.<\/p>\n

As part of the back channel diplomacy, it would be smart for Zambia to utilize South Africa, because of its closeness to China and its strategic position in Zambia\u2019s debt restructuring talks. The ruling African National Congress (ANC) and the Chinese Communist Party, enjoy excellent relationships. In addition, South Africa is a very good intermediary in the sense that it is a Southern Africa Development Community (SADC) member, Vice Chair of Zambia\u2019s Official Creditor Committee (OCC) and a fellow member of BRICS with China, with immense experience in dealing with China. South Africa, could for example, lobby China among other things, to call for an urgent 4th OCC Meeting in March, 2023 to resolve Zambia\u2019s debt. China will react more favourably to South Africa\u2019s appeals on behalf of Zambia, than those coming from United States or United Kingdom or the International Monetary Fund.<\/p>\n

As the current situation stands, the only publicly known date for the next official discussion on Zambian debt talks is next month. There are planned talks around the time of the IMF and World Bank spring meetings in April, 2023, possibly under the auspices of the new G20 established vehicle called \u2013 the Global Sovereign Debt Roundtable, which has brought public and private creditors to the negotiating table. Zambia can ill afford to wait for that. It should lobby China, the all-weather friend immediately.<\/p>\n

Statecraft in the international arena requires a smart balance between politics, diplomacy and economics, and a need to draw on other people\u2019s skills sets and experience, for risk mitigation. State governance and geopolitics are complex, with a lot of moving parts for even the smartest people to handle on their own, as Former US President Barack Obama observed in his memoir: \u201cA promised Land\u201d.<\/p>\n

For More News And Analysis About Zambia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Zambia. The timing of the G20 finance Ministers and Central Bank governors\u2019 summit in Bengaluru, India, could not have come at a worse time for Zambia. The date of the summit coincided with the one year anniversary of Russia\u2019s invasion of Ukraine on 24 February, 2022.The Russia-Ukraine war\u2019s first anniversary diverted attention from […]<\/p>\n","protected":false},"author":84,"featured_media":42068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[234,235,233],"class_list":["post-42070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-zambia","tag-zambia"],"yoast_head":"\nG20 Finance Summit fails to resolve Zambia\u2019s Debt relief Deal, What next? - Zambia<\/title>\n<meta name=\"description\" content=\"The timing of the G20 finance Ministers and Central Bank governors\u2019 summit in Bengaluru, India, could not have come at a ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"G20 Finance Summit fails to resolve Zambia\u2019s Debt relief Deal, What next?\" \/>\n<meta property=\"og:description\" content=\"The timing of the G20 finance Ministers and Central Bank governors\u2019 summit in Bengaluru, India, could not have come at a ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next\" \/>\n<meta property=\"og:site_name\" content=\"Zambia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-11T23:45:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-12T23:36:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/zambia\/sites\/35\/2023\/03\/postQueueImg_1678565760.48.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"569\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/zambia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"G20 Finance Summit fails to resolve Zambia\u2019s Debt relief Deal, What next?\",\"datePublished\":\"2023-03-11T23:45:40+00:00\",\"dateModified\":\"2023-03-12T23:36:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next\"},\"wordCount\":1343,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/zambia\/sites\/35\/2023\/03\/postQueueImg_1678565760.48.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Zambia\",\"Zambia\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next\",\"url\":\"https:\/\/www.africa-press.net\/zambia\/all-news\/g20-finance-summit-fails-to-resolve-zambias-debt-relief-deal-what-next\",\"name\":\"G20 Finance Summit fails to resolve Zambia\u2019s Debt relief Deal, What next? 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