The first country on the continent to default on its debt after the start of the pandemic, Zambia sees an improvement after the agreement given by the IMF for a credit facility of $ 1.4 billion over three years. The coming to power last August of a new president, Hakainde Hichilema, and his desire to reform the practices of his predecessor have, it seems, convinced the IMF to support Zambia.
Coming to power last August, Hakainde Hichilema had promised to shed light on the debt accumulated by the previous Edgar Lungu regime. In six years, Zambia had seen its debt multiplied by seven, accumulating a stock estimated at nearly thirteen billion dollars in debt, much of it with China. All in complete opacity and without Parliament or public opinion being informed.
Since September, President Hichilema has started negotiations with the IMF on the reforms to be undertaken and on the establishment of a rescheduling program.
In October, the IMF welcomed its draft budget, its desire to reform taxes and reduce public spending. These advances made possible the granting of a credit facility of $ 1.4 billion over three years. The fact remains that if the Zambian authorities have put an end to mismanagement and corruption at the highest level of the state, the consequences of the practices of the previous team are likely to be felt for a long time. Indeed, to convince the IMF, the new president proposed to remove subsidies on fertilizers, electricity and fuels, which could lead to strong social discontent.