Zambia seeks debt reduction

Zambia's President Hakainde Hichilema is pleased China will co-chair a creditor committee with France during debt negotiations, he told Reuters on Monday, adding that a partial write-off of the country's US$32 billion debt was on the table.

Hichilema said Zambia aims to avoid another debt default after it became in 2020 the first country in the pandemic era to default on its debt.

"The overall approach is to rein in on the debt, which starts with ceasing to borrow recklessly going forward, especially not borrow at high cost," Hichilema said during an interview with Reuters on the sidelines of the Mining Indaba conference in Cape Town.

"Now that we have this common framework, we are seeking a reduction in the debt as part of the package. Everything is on the table," he said.

Zambia, Africa's second-biggest copper producer, is struggling to jumpstart its economy as it grapples with a debt load reaching 120% of GDP.

Since Hichilema's election last August, Zambia has implemented business-friendly reforms and investor sentiment has improved, with the kwacha currency increasing in value against the dollar. -Reuters