“Zambia is back. Zambia is bankable” says African Development Bank.

Dr Akinwumi Adesina, the President of the African Development Bank (AfDB) Group, concluded a formal two-day visit to Zambia during which he engaged in discussions with President Hakainde Hichilema. The primary focus of their meeting was to explore additional assistance for Zambia as the nation emerges from a remarkable bond restructuring process, specifically addressing bilateral debt, amounting to $6.3 billion.

The AfDB has assumed a pivotal role in the allocation of resources and diligent advocacy for Africa’s concerns on the international platform, particularly in the efforts to tackle the pressing issue of high capital costs and debt.

Adesina congratulated the Zambian government for successfully achieving an accord with its bilateral creditors through the G20 Common Framework on debt treatment, an agreement which signified the growing stability of the Zambian economy and encouraged further collaboration between AfDB and Zambia.

During their visit, Adesina told Hichilema that he has “created a sense of hope in the country and confidence in the economy, paving the way for investments to return and accelerate the drive to achieve prosperity for the country”.

Hichilema expressed his admiration for AfDB’s support and acknowledged the importance of the relationship with the institution for Zambia.

In addition to the initial to $150 million in budget support, the Bank intends to facilitate Zambia’s access to the regional financing window of the African Development Fund (ADF). This financial support would enable the funding of transformative infrastructure projects, such as those related to energy, road, and rail transport connections with neighbouring countries, namely Mozambique, Angola, and the Democratic Republic of Congo.

Adesina pledged to help reform Zambia’s farm input support program, using technology such as biometric registration and electronic vouchers which would increase the program’s efficiency and profits.

The Bank has also made the full services of the Africa Legal Support Facility (ALSF) accessible to Zambia, which will support the nation to renegotiate the conditions of debt with private external creditors.

Adesina said, “The starting point is to now make sure the debt treatment works and that Zambia does not again return to a debt crisis” and was confident that AfDB’s contributions will provide substantial support for Zambia’s economy. 

After his visit concluded, Adesina commended Hichilema for his “drive, passion and resolute approach to debt resolution and restructuring for the country,” and added, “Zambia is back. Zambia is bankable; and you, Mr President, you are bankable. You can count on the African Development Bank’s support all the way.”

Photo: African Development Bank