This marks a major breakthrough in the country’s years-long effort to restore debt sustainability and rebuild investor confidence.
The deal comes after Zambia became Africa’s first sovereign defaulter in the wake of the COVID-19 pandemic, when it halted payments on its external debt in 2020. Since then, the country has faced a lengthy and complex restructuring process involving both official and private creditors.
Economist Trevor Hambayi says the latest agreements represent a turning point, as they create the fiscal space needed for Zambia to reduce its debt burden and attract new investment. “It creates room for Zambia to stabilise its economy and position itself for growth,” he said.
Hambayi noted that the experience offers key lessons for other African countries facing similar debt challenges. “First, we need to be able to manage our debt situation better. This challenge, where countries fall back into debt and then ask for forgiveness, is an issue of poor fiscal management, and this must be addressed,” he said.
He added that the length of Zambia’s restructuring process, which has taken more than four years to complete, underscores the complexity of coordinating among diverse creditors and the need for faster, more transparent frameworks for future debt workouts.
–ChannelAfrica–
