Wednesday, April 24, 2024

Zambia Celebrates Economic Turnaround with Landmark Debt Agreement

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President Hakainde Hichilema has hailed the recent $3.5 billion agreement with Eurobond holders as a significant milestone signaling a turnaround for Zambia’s economy. This agreement, according to President Hichilema, has freed up resources that were previously allocated to debt repayments, allowing Zambia to channel these funds towards essential developmental economic needs.

Addressing the nation on this landmark achievement, President Hichilema expressed gratitude to the Zambian people for their patience, affirming his administration’s dedication to improving their lives.

The World Bank has echoed President Hichilema’s sentiments, describing Zambia’s agreement with Eurobond holders as a crucial step in the country’s economic transformation. Nathan Belete, the World Bank Country Director, commended President Hichilema’s leadership in spearheading the negotiation process that led to this significant milestone. Belete emphasized the President’s commitment to reforming Zambia’s macro-economic stability.

In further support, the International Monetary Fund (IMF) has welcomed the debt restructuring agreement between Zambia and bondholders, deeming it consistent with the parameters of the IMF program.

British High Commissioner to Zambia, Nicholas Woolley, applauded all parties involved in securing the debt deal, recognizing it as a major achievement for Zambia and for the G20 Common Framework debt process.

Additionally, Nevers Mumba, President of the Movement for Multiparty Democracy (MMD), extended congratulations to President Hichilema and his economic team for successfully concluding the complex Eurobond debt restructuring process. Dr. Mumba emphasized the timely nature of the deal, given the economic strain faced by Zambia and its citizens, and expressed optimism that the restructuring, coupled with reorganization efforts in the mining sector, would alleviate economic challenges.

Amid these developments, Zambia’s dollar bonds have strengthened, indicating investor confidence as the country progresses towards finalizing its long-awaited debt restructuring. Moody’s, a credit rating agency, predicts that the agreement will bolster growth prospects for Zambia, signaling positive economic momentum.

The debt restructuring agreement represents a significant step forward for Zambia, fostering optimism for a brighter economic future as the country continues its journey towards stability and prosperity.

19 COMMENTS

  1. A wannabe self proclaimed economic and governance analyst in the name of Emmanuel Mwamba has opened his unabashed mouth to proclaim that the deal is a false start as and so people should not celebrate
    What beats me is the cheeky this chap and his PF tandem of crooks are!
    They created this stinky mess in the first place and when others spend sleepless nights to clean up, they mock them. What nonsense!!
    In a way I think the new dawn has scored in allowing them all this freedom to speak because it’s the only way that citizens can see how evil they are and never to be careless with their vote!

  2. Well done Mr President, your team and the people of Zambia! Please let us reduce or avoid some unnecessary borrowing (Proverbs 22:7 – a borrower is servant to the lender). One Zambia one nation. God bless Zambia!

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    • Smart President for fvcked citizenery.
      1. Stop “one Zambia one Nation”, he died and the motto doesn’t make sense anymore.
      2. And stop those footballers waving hand on their heads. That looks extremely fooolish, especially girls, don’t do the thing. PF fuuls.

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    • @James We the people of Zambia had nothing to do with this nkongole being bequeathed on our great grandchildren. Perhaps Bweengwa should foot the entire bill given the underhand dealings behind it

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  3. Whilst its a positive step forward
    it is not a Landmark achievement !!! there have been dozens before from previous Grz’s
    very poor reporting as usual

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  4. Is it by sheer coincidence that the Euro Bonds had to be restructured at a time when mine privatisation was happening? Can you smell that buka buka fish? I just did. There is nothing landmark today because we have sold the mines before to mining firms at the same 51/49 share. We had also realigned our debts before at the turn of the millennium where our Cabbage then did it better than your Genius today.

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    • Under our cabbage , zambia was booming in confidence and everything else……..

      PLM made us proud to be zambian…….

      HH will surpass

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  5. How can we celebrate deferring this debt to our children and grand children?

    Are we that selfish? Or is it just Hakainde that misguided?

    Vote wisely in 2026.

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    • You need a strong economy to handle that sort of debt……….

      By 2031 , the Zambian economy will be able to handle anything………

      Vote wisely in 2031………

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  6. Why has it become almost impossible to post on LT? Has someone tempered with the site in order to silence us?

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    • ………

      LT mostly allows sensible people to post freely……….

      They know most of you spend too much time in the chibuku tarvens………

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    • What happened to the fiction yesterday that HH had won an award for one of Africa’s best performing presidents? Dropped? Like a hot potato!

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  7. Postponing debt payment into the future is a sure way of mortgaging future generations of Zambians who will have to repay the loans. We have the opportunity to use the increased international market prices of copper, cobalt, gold, manganese and precious minerals the country is endowed with to pay existing debt. But what do we do?Due to their selfishness, our leaders enter into Development Agreements with foreign mining companies that receive generous tax holidays in secretive deals. But if we cannot pay for our debt now, what do we expect future generations to pay our debt with given that our mineral deposits are a wasting asset and may not be in abundance in the future? Are we not simply making future generations to inherit our present-day poverty?

  8. “Zambia Celebrates Economic Turnaround!!” Since when did a debt mark a turnaround? Start from KK’s borrowing through Chiluba and Mwanawasa’s to Sata then now HH and you will understand what a turn around is. It is an absent phenomenon

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