(3 minutes read)
The United States said that it would support Zambia in getting out of the massive debt problem. US Treasury Secretary Yellen, while on her visit to a southern African country said that her country would help in restructuring the loans to help Zambia to come out of the debt trap. Zambia, has defaulted the debt repayment, which led to its downgrading by credit rating agencies
The United States said that it would support Zambia in getting out of the massive debt problem. US Treasury Secretary Yellen, while on her visit to a southern African country said that her country would help in restructuring the loans to help Zambia to come out of the debt trap. Zambia has defaulted the debt repayment, which led to its downgrading by credit rating agencies.
The visit of the US Treasury Secretary is one among the series of such visits planned henceforth by the US authorities to the neglected area -Africa- by former President Donald Trump. It is also part of an effort by the US to regain influence in Africa, which is billed as the future growth hub. US President Joe Biden will be visiting the continent this year to further consolidate the US presence in the continent.
Yellen said that she would continue to press for significant participation by major creditors, both bilateral and private sector, in providing debt relief to Zambia, particularly China. Yellen is on a 10-day visit to Africa. The visiting dignitary met with Zambia’s president Hakainde Hichilema and finance Minister Situmbeko Musokotwane. In both meetings, the discussion was about debt restructuring. Both Zambian leaders told Yellen that the resolution of the debt issue was central to the further progress of the nation, which has been facing massive problems including the recent power cuts.
In 2020, Zambia became the first African country to default on its foreign debt. The debt is estimated at a whopping US$17.3 billion. The country is also facing the brunt of the effect of the Covid-19 pandemic and the impact of the Russian-Ukraine war. The previous government led by Edgar Lungu borrowed heavily to finance a frenzy of infrastructure projects during his six years in office.
Read Also:
https://trendsnafrica.com/cost-overruns-in-zambia-mainly-due-to-corruption-imf/
https://trendsnafrica.com/zambia-resorts-to-power-rationing/
President Hichilema, who was elected in 2021 is now engaged in improving the image of the country. He has promised to root out corruption and resuscitate the economy. In the process, he has been building rapport with its creditors and international donors to restructure the existing loans.
