Of the more than $10 billion external debt, Lusaka reportedly owes China some $6.4 billion mostly in infrastructure development financed by Chinese lenders. AdvertisementA recent assessment by business risk consultancy firm EXX Africa showed Zambia was running into a “dire” straits on repayment. In June, President Xi said China would cancel interest-free debt owed by “relevant” African countries as part of Beijing’s move to help the continent during the Covid-19 pandemic. COMPLEXITIESMr Lijian Zhao, spokesperson from the Chinese Foreign Ministry had earlier alluded to Africa’s “complex” debt situation, which he argued made it difficult to offer any blanket debt forgiveness. “China is unlikely to take a unilateral approach to debt forgiveness, especially on concessional loans and commercial loans, which constitute the majority of African debts owed to China,” she added.

Source: Daily Nation July 26, 2020 15:45 UTC