Zambian politician, activist sheds light on Zambia's precarious financial situation
(MENAFN) In an exclusive interview with RT, Zambian politician and activist Joseph Kalimbwe shed light on Zambia's precarious financial situation, emphasizing its status as one of the most indebted nations in Africa. Despite accumulating substantial international debt over the past decade, Zambia has little to show in terms of national development or economic progress, paralleling the debt burdens of countries like Angola and war-torn Sudan, Kalimbwe revealed.
The gravity of Zambia's debt crisis was underscored in November 2020 when it became the first African nation to default on Eurobond payments amid the COVID-19 pandemic. Seeking respite, Zambia secured a USD1.3 billion loan from the International Monetary Fund (IMF) in 2022, compelling the country to restructure its debt with other creditors. Recent developments indicate progress, with over 90% of holders of Zambia's $3 billion international bonds agreeing to a restructuring plan announced by the Ministry of Finance, marking a crucial step towards resolving the prolonged default.
Kalimbwe attributed much of Zambia's debt burden to loans acquired during the tenure of previous administrations, particularly from China, leaving the current government grappling with repayment challenges. He lamented Zambia's reliance on international organizations for funding, criticizing the stringent conditions and high interest rates that accompany such assistance. Kalimbwe's concerns extend beyond Zambia, highlighting a broader trend across the African continent where borrowing often outpaces repayment capacity, exacerbating financial vulnerabilities.
Proposing a sustainable solution, Kalimbwe emphasized the importance of resolving issues amicably and avoiding perpetual cycles of borrowing without the means to repay. His remarks underscored the urgent need for developing nations to address debt sustainability while charting a path towards economic stability and self-reliance.
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