On Friday, newly-elected President Hakainde Hichilema appointed experienced economist Situmbeko Musokotwane as his new finance minister, as Zambia grapples with an unsustainable $12 billion in external debt.
At his swearing-in on Tuesday, after a surprise landslide election win against incumbent Edgar Lungu, Hichilema vowed to bring public spending and the deficit under control. read more
Musokotwane, who was previously finance minister between 2008 and 2011, faces the task of fraught negotiations with multiple and in some cases, rival, creditors.
Of Zambia’s $12 billion external debt, some $3 billion is in Eurobonds, $3.5 billion in bilateral debt, $2.1 billion is owed to multilateral lending agencies, such as the IMF, and along with another $2.9 billion of commercial bank debt.