Financially Embattled Zambia, IMF begin Talks

The International Monetary Fund has announced that Zambia has begun negotiations for financial support. Africa News reports that the Zambian economy has been in free fall due to years of crisis, such as drought, trouble in the country’s mining sector, and rising debt. Efforts, in 2017, to acquire financing of $1.3 billion from the IMF had been rejected several times.

The coronavirus pandemic has contributed to an even more rapid deterioration of the country’s economy. Copper producer, Zambia, has been forced to adopt austerity measures to cope with the situation.

Africa News reports that early November saw Zambia becoming the first African country to default on its international debt since the outbreak of the pandemic. The country failed to meet the $42.5 million in interest payments expected by investors. Embattled Zambia also did not manage to honor payments by the end of a grace period extended.

Umm Muhammed Umar

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