Zambia advocates for resolution on outstanding debt [Business Africa]

Rédaction Africa Links 24 with Africanews
Published on 2024-02-23 12:21:55

Zambia is still grappling with a staggering $7 billion debt burden, despite reaching a deal with bilateral lenders last year that addressed over $6 billion of debt. The remaining $7 billion is owed to bondholders and commercial banks, indicating the challenges the country faces in managing its financial obligations.

The journey to debt relief for Zambia has been arduous, with a deal to restructure approximately $3 billion of debt with bondholders in October last year being rejected by official creditors. Countries such as France, China, and South Africa co-led the opposition, arguing that the terms agreed upon with bondholders did not align with the concessions granted by the official lenders. This setback has further complicated Zambia’s efforts to alleviate its debt burden and has implications for other African countries, such as Ethiopia and Ghana, who are also in need of debt restructuring.

Andrew Chibuye, the Country Senior Partner at PWC in Zambia, provides insights into the challenges faced by the copper-producing nation in its pursuit of debt relief. His expertise sheds light on the complexities involved in managing debt and navigating negotiations with multiple creditors.

In a separate development, China’s trade with Africa surpassed $282 billion in 2023, highlighting Beijing’s continued position as the continent’s largest trading partner for the 15th consecutive year. The trade volume between China and African nations grew by 1.5% in 2023, with Chinese exports to Africa increasing by 7.5% to $173 billion, while imports from Africa totaled $109 billion, reflecting a 6.7% decline. China also saw its trade surplus with Africa expand to $64 billion in the same year, underscoring the imbalances in the trade relationship between the two partners.

Meanwhile, Cameroon recently hosted a ‘Made in Africa’ expo, emphasizing the need for African economies to shift from exporting raw materials and commodities towards industrialization. Global disruptions such as pandemics and conflicts have catalyzed efforts by African countries to promote local manufacturing and take advantage of initiatives like the African Continental Free Trade Area (AfCFTA) to access new markets. Manufacturers at the exhibition in Cameroon explored opportunities to leverage regional trade agreements and expand their reach to international markets, signaling a shift towards economic diversification and sustainable growth in Africa.

In conclusion, Zambia’s ongoing struggle with debt, China’s dominant position in trade with Africa, and Africa’s push towards industrialization and trade diversification reflect the complex dynamics shaping the continent’s economic landscape. As countries navigate these challenges and opportunities, collaborative efforts and strategic partnerships will be crucial in fostering sustainable economic development and resilience in the face of global uncertainties.

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