Category: Economy

The Zambia Association of Manufacturers (ZAM) expresses confidence in the restoration of Zambia’s credibility among the international community and lending institutions following debt restructuring. ZAM President Ashu Sagar asserts that Zambia can now focus on economic growth, thanks to debt restructuring measures. Sagar emphasizes that restructuring will enable the country to allocate resources towards crucial sectors, promoting investment and development. The previous debt burden had created uncertainty for the private sector and potential investors, hindering domestic economic growth. Sagar urges remaining commercial creditors to expedite negotiations to ensure a swift… Read More Here

Zambia is in talks to restructure $3.3 billion of commercial debt, after reaching a deal with overseas holders of its sovereign bonds last week, an official said on Wednesday, as the country seeks to emerge from a three-year default.“We have already started negotiations and with some we are almost reaching there,” Secretary to the Treasury Felix Nkulukusa said at a public meeting, referring to private creditors other than bondholders. “The $3.3 billion is the money that we have to continue engaging (on) and we are engaging in good faith,” he… Read More Here

Zambia’s annual inflation rate has soared to its highest level in over two years due to the country’s worst drought on record, resulting in a sharp increase in food prices. According to acting Statistician General Chola Daka, the consumer price index rose to 13.7% in March, compared to 13.5% the previous month, with prices rising by 1.2% within the month. The spike in inflation was primarily driven by surging prices of bread, cereals, and meat, causing food inflation to jump to 15.6% from 14.1% in the previous month. However, non-food… Read More Here

The World Bank has lauded the recent agreement between the Zambian Government and bondholders regarding the terms for restructuring Eurobonds, marking a significant step forward in the country’s debt restructuring efforts. This agreement builds upon Zambia’s previous deal with official bilateral creditors in 2023. The Official Creditor Committee has affirmed that the terms meet comparability of treatment requirements and align with the parameters of the Joint World Bank-International Monetary Fund Debt Sustainability Framework. To finalize the debt restructuring process, the World Bank emphasizes the importance of other commercial creditors agreeing… Read More Here

Zambia announced on Monday a breakthrough agreement with private creditors, restructuring $3 billion of its international bonds, marking a significant milestone in its debt restructuring efforts. President Hakainde Hichilema hailed the agreement as historic, signaling progress in negotiations with Eurobond holders. Zambia’s debt restructuring, facilitated under the Common Framework, has faced significant delays, impacting investments, economic growth, and local financial markets. Despite challenges, Zambia secured a $1.3 billion IMF loan in 2022, contingent on debt restructuring with other creditors. Following the announcement, Zambia’s sovereign bonds saw a rise in value.… Read More Here

A consortium of international bondholders in Zambia has initiated discussions with the government after signing a non-disclosure agreement to deliberate on a $3 billion debt restructuring proposal, according to three informed sources on Tuesday. Sources revealed that the government dispatched a formal proposal for debt restructuring to the steering committee of the creditor group last week, signaling the commencement of formal negotiations typically heralded by the signing of a non-disclosure agreement. Zambia’s President Hakainde Hichilema had previously announced in late February that the remaining official creditors, China and India, had… Read More Here