Zambia is still wrestling with nearly $7 billion in unresolved debt, despite a previous deal with bilateral lenders that addressed over $6 billion. This remaining amount is owed to bondholders and commercial banks.
The country’s attempts to secure debt relief faced a setback when an October 2022 deal to restructure approximately $3 billion of debt with bondholders was rejected by official creditors, including France, China, and South Africa. These creditors argued that the terms agreed upon with bondholders did not align with the concessions Zambia had obtained from official lenders. The ongoing challenges in Zambia’s debt situation are being closely observed by other countries, such as Ethiopia and Ghana, which are next in line for debt restructuring.
Andrew Chibuye, the Country Senior Partner at PwC in Zambia, sheds light on Zambia’s protracted efforts to obtain debt relief in an interview.
In a separate development, trade between China and Africa in 2023 reached $282 billion, marking the 15th consecutive year that Beijing has been the continent’s largest trading partner. Chinese exports to African nations increased by 7.5% to $173 billion, while Chinese imports from Africa saw a 6.7% decline year on year, totaling $109 billion. Beijing’s trade surplus with Africa expanded to $64 billion in 2023.
The export of raw materials and commodities has been identified as a key factor contributing to structural weaknesses in African economies. However, global disruptions caused by pandemics and conflicts are accelerating efforts by African countries to industrialize. At an exhibition in Cameroon, manufacturers are exploring ways to leverage the African Continental Free Trade Area (AfCFTA) and tap into markets abroad.
