Finance Minister Ready To Renegotiate Debt and Get Investment Plan Underway
Situmbeko Musokotwane, Zambia’s finance minister, has encouraged the renegotiation of Zambia’s $6 billion debt with China.
He told Reuters on Saturday that it was still not clear who would be leading the talks to renegotiate the debt, however, he stated that Zambia is ready.
Under the Group of 20’s Common Framework, the country is working with China and France to restructure the debt.
In September, Zambia received a three-year $1.3 billion loan from the IMF but Musokotwane has expressed that the country wants to renegotiate as soon as possible.
Zambia has offered a present value of $6.3 billion debt reduction in order to ensure the country does not reach an “unsustainable debt situation.”
He stated, “Because it means we will conclude today, then a month later or three months later, we default again.”
The finance minister also outlined further plans to increase investment into Zambia, something that could also ease challenges arising from the debt.
One of these plans includes increasing grain exports to address current shortages brought about by the Russian invasion of Ukraine.
He also announced plans for an overseas agriculture investors forum to be held later next year.
He stated, “We are making preparations for investors not just in Zambia, but from outside to take advantage of the land resources that we have, to come and produce food to export.”
The news follows the announcement that Zambia has received a $300 million loan from the World Bank which will be used to improve roads, electricity and dams.
Additionally, Musokotwane explained that there had been increased interest in the Mopani copper mine and stated that “by the end of this year probably we should have a solution.”
One of the ways that the country is making mining investment more attractive, and sustainable, is through the initiation of “golden shares,” which would allow the government to veto any investors they felt were not credible.
Photo: REUTERS/James Lawler Duggan