Zambia declines calls to allow World Bank to restructure its China’s loan


Zambia has rejected China’s call for World Bank to join its debt restructuring.

Zambia’s finance minister Situmbeko Musokotwane said in an interview said that the southern African country is aiming to settle a loan of about $13bn in 2023, three years after it had defaulted on it.

As the Covid-19 pandemic battered Africa in 2020, Zambia became the first country on the continent to default on its foreign debt — estimated at $17.3 billion.

Since the 2021 election of businessman-turned politician President Hakainde Hichilema, the country has made progress in restoring relations with donors.

Last year, the IMF approved a $1.3 billion loan to help Zambia restore fiscal stability.

Since then, the restructuring settlement has stalled and Hichilema’s government has been unable to access a $1.3bn IMF bailout

Zambia’s loan to China stands at $6bn spread across major banks.

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