Katlego Sekhu

Zambia seals a deal to restructure debt of more than R120 billion owed to other governments.
In 2020, Zambia became the first African country to default on its sovereign debt, with China being its biggest creditor. This was in the midst of the COVID-19 pandemic. They have now reached an agreement to restructure their debt.
“Zambia has reached an agreement on a debt treatment with our official creditors — a significant milestone in our journey towards economic recovery and growth,” Zambian President Hakainde Hichilema said on Twitter.
The agreement calls for the Southern African nation’s debt to be rescheduled over 20 years, including a three-year grace period during which only payments on interest will be due.
Gugu Mfuphi notes that this is a step in the right direction for Zambia, which has lost a lot of favour in the markets, resulting in downgrades from rating agencies.
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