ZAMBIA has secured a debt deal with its foreign lenders, marking the first African nation to default following the Covid pandemic.
In June, Zambia reached a principle agreement with its creditors, including China and Western nations, on $6.3 billion of its debt.
A memorandum of understanding with Zambia creditors “has finally been signed”, International Monetary Fund Managing Director Kristalina Georgieva said at the IMF-World Bank annual meeting in Marrakech, Morocco.
Georgieva announced the decision at a global debt management panel discussion, alongside Zambian Finance Minister Situmbeko Musokotwane.
“The creditors have been wonderful. But that by itself is not enough to provide the kind of life that these young people in Africa want to live, “ Musokotwane said.
“What will deliver that? Higher economic growth to create jobs so that we no longer have youth crossing the Sahara, over the Mediterranean,” he added.