Zambia

About Zambia

Zambia defaulted on its Eurobond debt in November 2020, the first African country to default during the COVID pandemic. Zambia had approximately 12 billion in external debt. The country had borrowed heavily, particularly from China and bondholders, to finance infrastructure projects. Copper prices, Zambias main export, had fallen. The default was complicated by the lack of transparency around Chinese debt. Negotiations under the G20 Common Framework took over three years. China initially insisted on comparability of treatment but dragged negotiations. Zambia eventually reached a deal in 2023. The case highlighted the challenges of restructuring debt owed to China, which does not participate in the Paris Club of traditional creditor nations. The Common Framework process proved slow and cumbersome.