On a positive note, Zambian president, Hakainde Hichilema, has been unusually focused on putting Zambia on a sound fiscal footing since coming to office in 2021 rather than exacting vengeance on those that were behind his imprisonment and torture in 2017 on trump-up charges. Almost three years after officially defaulting on its debt, Hichilema has successfully negotiated a debt restructuring deal with key creditors – including China, that will free up funds from debt serving for investment in infrastructure and other aspects of the economy, and for job creation. The deal, which frees Zambia from its $6.3 billion loan servicing obligations for three years, paves the way for Zambia to receive IMF funding and enter talks with private lenders for a separate restructuring deal of another $6.8 in private debts.
While his counterparts were busy delivering empty populist speeches and doing nothing, Hichilema has been singularly focused and determined to get this deal done to give Zambia breathing space to jumpstart its economy. This breakthrough may herald good news for other similarly distressed African countries like Ghana and Ethiopia to negotiate similar restructuring plans. I wish Hichilema could improve further on his transparency in governance to make a clean break from the past and become a shining example to other African leaders.
By: Christopher Akor