Zambia announces an increase in foreign debt

In Zambia, the newly elected government announced an increase of US$2 billion in debt owed to foreign creditors.

External debt in the resource rich but impoverished country reached US$14.48 billion this year, over 60% of gross domestic product.

Of the total debt, China is the largest foreign creditor. Zambia owes China US$6.18 billion including unpaid interest.

The debt is attributed to former president Edgar Lungu who borrowed heavily to fund infrastructure projects.

The government, led by opposition leader Hakainde Hichilema who took over after elections in August is in talks with the International Monetary Fund, IMF, seeking a bailout to restructure its debt.

Zambia became the first African nation to default on its debt during the coronavirus pandemic.