Zambia Finance Minister on debt restructuring, growth outlook

Zambia's Minister of Finance, Situmbekobu Sokotwane, has been actively engaged in debt resolution efforts following visits from top officials such as U.S. Treasury Secretary Janet Yellen and International Monetary Fund Managing Director Kristalina Georgieva. In a recent interview with CNBC Africa's Godfrey Mutizwa, Minister Sokotwane provided insights into the ongoing progress and challenges in addressing Zambia's debt situation. The Minister highlighted the importance of unity among creditors to navigate the complex landscape of multiple debt holders, emphasizing the need for a collaborative approach to achieve a sustainable solution. Despite the hurdles, Minister Sokotwane expressed confidence in reaching a resolution by the end of the quarter, pointing to positive engagements with creditors and their recognition of Zambia's economic challenges. The Minister acknowledged the active participation of both private and official creditors in seeking clarity on debt resolution parameters, noting that discussions encompassed options such as debt restructuring and burden-sharing mechanisms like haircuts or extended repayment terms. As Zambia pursues equitable solutions, Minister Sokotwane underscored the importance of transparency and fairness to foster creditor trust and support investment prospects. While noting the technical complexities of the process, the Minister remained optimistic about the ongoing dialogue and anticipated progress towards a decision point in the near future. Minister Sokotwane also emphasized the broader implications of resolving Zambia's debt crisis, highlighting the country's role as a test case for debt management in Africa and its significance in attracting much-needed investments across key sectors like mining and energy. The Minister emphasized the potential for Zambia's economic growth and investment opportunities once the debt overhang is addressed, signaling a positive outlook for the country's development prospects.