Zambia is one of Africa’s major producers of copper. Copper contributes over 70% to the economic growth of Zambia.
Yet like most African countries Zambia is indebted to the International Monetary Fund (IMF), and China among others.
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Zambia would love to repay her loans but the economy is not buoyant enough, hence, it is seeking the United States’ help.
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Amidst a major cholera outbreak that has taken the lives of over 333 persons, the Zambia government is trying to restructure its debt to international financial organisations.
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Zambia hopes to agree on key conditions for restructuring $3 billion of its bonds no later than the first quarter of 2024.
The challenge, however, is that the creditor nations have refused to accede to Zambia’s request to restructure its debt.
This is due to members of the Paris Club creditor nations, China and the International Monetary Fund (IMF) rejecting a preliminary restructuring deal.
To reach an agreement on restructuring her debt, the Zambian minister of finance, Situmbeko Musokotwane, has engaged the United States Treasury Department.
U.S. Treasury Under Secretary for International Affairs Jay Shambaugh pledged “support to Zambia” to end the Cholera outbreak when he spoke to Situmbeko Musokotwane.
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Shambaugh “welcomed Zambia’s performance to date under its IMF program and encouraged continued progress on the remaining economic reforms,” the Treasury Department said.
It is hoped that this meeting will have a positive impact on Zambia’s debt restructuring drive.
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