Yellen calls for debt renegotiations between Zambia and China – By Fatima Hussein (Associated Press) / Jan 23, 2023
U.S. Treasury Secretary Janet Yellen, who is touring African countries this week, says it is crucial to tackle Zambia’s debt crisis. Ms. Yellen is seeking to encourage fair American investment in a country predominantly financed by China.
U.S. Treasury Secretary Janet Yellen, on the second leg of an African tour aimed at promoting American investment and ties, said on Monday it’s crucial to immediately address Zambia’s heavy debt burden with China.
Ms. Yellen was in Lusaka, a capital city that’s visibly dominated by Chinese financing. Visitors to Lusaka arriving at the renovated Kenneth Kaunda International Airport see a facility expanded in 2015 with Chinese money. A ride into the city passes billboards and newly built firms bearing Chinese signage, more evidence of Beijing’s influence and increasing competition with the United States.
But the growth that the country has experienced has come with a heavier debt burden. Zambia became Africa’s first coronavirus pandemic-era sovereign nation to default when it failed to make a $42.5 million bond payment in November 2020. Negotiations over how to deal with the debt load have been ongoing.
Experts say a prolonged debt crisis could permanently prevent countries like Zambia from recovering, leading to an entire nation sliding deeper into poverty and joblessness and excluding it from credit to rebuild in the future. “It’s critically important to address it right away,” Ms. Yellen told reporters at a Monday morning press conference at Zambia’s National Public Health Institute.
