Strategies to future-proof Zambia: Debt relief and beyond

Zambia is seeking approximately $8 billion in debt relief under the G20 Common Framework to address a public debt estimated at nearly $34 billion by the end of 2021. The process has been slowed by disagreements among the Official Creditors Committee, including tensions between China and the United States, and the reluctance of private-sector creditors. To mitigate the impact of austerity measures required by IMF and World Bank programs, the document recommends protecting the poor and unemployed from the removal of electricity, fuel, and agricultural subsidies. The briefing argues that debt restructuring should be linked to the global energy transition by securing investment in copper and other critical minerals like cobalt, lithium, and nickel. Additionally, it proposes 'debt for nature swaps' to fund mine rehabilitation, climate-smart agriculture, and ecosystem preservation.

• Zambia's total public and publicly guaranteed debt was estimated at almost $34 billion at the end of 2021, with external debt accounting for nearly $17 billion.
• The G20 Common Framework's debt relief process for Zambia has been delayed by disputes within the Official Creditors Committee, specifically regarding burden sharing and the role of China.
• Zambia is seeking $8 billion in debt relief and has requested that the IMF begin dispersing Extended Credit Facility (ECF) funds despite the lack of a final agreement from the Official Creditors Committee.
• Fiscal reforms required by the IMF and World Bank, including the removal of fuel, electricity, and agricultural subsidies, risk exacerbating poverty and inequality.
• Zambia can leverage the global energy transition to boost its economy, as copper constitutes over 70% of its export revenues and there are opportunities to diversify into cobalt, lithium, and nickel.
• Debt for nature swaps (DNS) are proposed as a mechanism to forgive debt in exchange for investments in wildlife protection, climate-sustainable agriculture, and mine rehabilitation.
• Zambia has taken domestic steps to improve debt management, including repealing the Loans and Guarantees (Authorisation) Act and cancelling $2 billion in projects.

APA

Obisie-Orlu, V. (2023). Strategies to future-proof Zambia: Debt relief and beyond. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/07/Strategies-to-future-proof-Zambia-Debt-relief-and-beyond-Policy-Briefing.pdf

Chicago

Obisie-Orlu, Vincent. Strategies to future-proof Zambia: Debt relief and beyond. Good Governance Africa, 2023. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/07/Strategies-to-future-proof-Zambia-Debt-relief-and-beyond-Policy-Briefing.pdf.

Wikipedia

{{cite report |last1=Obisie-Orlu |first1=Vincent |title=Strategies to future-proof Zambia: Debt relief and beyond |publisher=Good Governance Africa |date=July 2023 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/07/Strategies-to-future-proof-Zambia-Debt-relief-and-beyond-Policy-Briefing.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{obisieorlu2023strategies, author = {Obisie-Orlu, Vincent}, title = {{Strategies to future-proof Zambia: Debt relief and beyond}}, institution = {Good Governance Africa}, year = {2023}, month = jul, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2023/07/Strategies-to-future-proof-Zambia-Debt-relief-and-beyond-Policy-Briefing.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }