By: MOS Education Team-葫芦娃
The finance and national minister of Zambia said on Tuesday, the country’s external debt is at $14.48 billion, much higher than the earlier figure of $12.91 billion, a 12% increase over the estimated value.
Over the past decade, Zambia has borrowed heavily from China’s Belt and Road Initiative, to fund infrastructure projects, including roads and railways. As a result, the country’s debt crisis has been getting worse, and the heavy debt has led to fiscal deficits, spiked inflation and food prices, stirring social unrest.
It is reported that Zambia owes at least $6.6 billion to Chinese lenders. Last year Zambia became the first sovereign defaulter during the pandemic era.
In August Zambians voted incumbent President Edgar Lungu out of office. Opposition leader Hakainde Hichilema became the president with a landslide victory. According to analysts, this election result showed voters’ unwillingness to pay the cost of the highly indebted economy.
This developing country has been in heavy debt under China’s Belt and Road Initiative, and this has caused major civil unrest among its citizens. Unfortunately it is the citizens of both countries who have to pay for the ultimate price.
Posted by: Yuki jiang
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