Africa

What happens if Zambia defaults on its debt? – BBC Africa

What happens if Zambia defaults on its debt? – BBC Africa

The COVID-19 pandemic has put a financial strain on a lot of countries across the world.

One of those countries is Zambia. The country has had financial issues before Covid-19, but the effects of the pandemic have not made things any easier.

The situation has reached the point where Zambia may default on its debt – essentially failing to pay instalments on bonds issued by the government which are held by banks.

Why is this bad for Zambia, and how could this affect the rest of the continent?

Video by Jameisha Prescod.

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50 Comments

  1. Maybe white members of the Canadian government would like to lecture Zambia about their poor fiscal management? Oh wait……never mind.

  2. I wish this gets into the thick skulls of Nigerian leaders. Stop borrowing for goodness sake! Use your oil money to create industries and bolster your education sector to refine your resources for export, infrastructural development and employment.

  3. If you accept the terms, the poor and middle class get punished for loans decided by the elites and foreigners will own your ass/ets (and this is a worldwide problem), the bigger the loan the bigger the bite, banks and govts should be separate like religion and politics.

    people of Zambia would be better off defaulting IMO, Zambia has the agricultural wealth to feed itself and the banks will be back….

  4. I want to see more reports featuring you Jameisha. Good coverage with a voice and face that warms the soul.

  5. Wait am so ashamed of my self Zambia 🇿🇲 is different from Gambia 🇬🇲 Thought she was talking about Gambia 🇬🇲 till I googled Zambia 🥺😔😔

  6. We are talking about only 12 Billions dollars. That is below a tenth of what Jeff Bezos is worth.
    Isn’t sad there is even a conversation about a 12 billions dollars debt.
    Back in 2010, Greece was about to default on its debt. The EU, the IMF agreed to lend over the course of 3 years 146 billions dollars to Greece.

  7. I wish Africa could be connected via a railway system both for commercial and tourism purposes.

    I then wish we could close our borders to everyone else and collapse, but as we collapse we start building within.

    Have one standard currency like Gadaffi had suggested.

    Exchange knowledge and tech and skills.

    Build our universities, our hospitals, roads etc. Create a system that’s unified and make new policies for trade.

    We must also open up our own nuclear energy plants and make our own weapons, to protect ourselves. Our allies should be people we can actually trust to back us up.

    When we have fortified ourselves, then we can open commerce to all others.

    But I’m sure some people would work hard not to allow this and rather feed us lies about each other so that we turn against each other. Educate your villagers as well so they know not to fall for this nonsense.

  8. The aim should be a one time tax to clear the debt in total. each state in Africa should clear their debt in this way . by taxing the whole of the United states of Africa to clear each countries debt. then invest in a bit coin model. beginning afresh . Only taking on a "loan" as a whole group of states and distributing the funds "EVENLY" across each state to implement "ELECTRICITY_SCHEMES" and other power and Water management schemes. Internet/ Communication Projects -as well as MAIL/ POST / Delivery. enabling each state to begin a Technical Revolution. as this infrastructure is required to enable for the transportation of resources among each state: allowing for the internal trade network to grow, which is only lapse because of distribution, technology cannot be implemented without Electricity and power ax well as life cannot be over come without WATER distribution which is key for farming and transforming the environments. The ability for solar power as well as wind turbine power and the distribution of power via a Form of WIFI which is currently being deployed on mobile phone technologies and can be deployed on a larger scale. Zambia should not be allowed to default on its loan or any other member of the united states of Africa… as we have the population to solve the debt among ourselves. making way for the single African currency the largest currency in the world. which will need to intern be backed by "BIT COIN"…. Our Natural resources are still the largest and most sought after in the world this is why they are Devaluing our currencies …. to get our wealth CHEEP! as their own resources are depleted.

  9. 1:34 who’s borrowing money to build malls? She’s affected positively but can’t go to those malls. smh

  10. Then they will go to the IMF to pay off the $12B, then they will default on that loan and the IMF will come through and repo important infrastructure or natural resources. Saved you 5 and half minutes.

  11. Most their money was stolen by the president to personally invest it in Eswatini Mobile and Inyatsi Group in Swaziland.

  12. Can’t even feel sorry for Zambian people they wanted this, being politically illiterate can really fuck you

  13. Well done China, you’ve bought yourselves another country. And looks like you are set to foreclose on Canada and Australia.

  14. I had this Zambian girlfriend for a few years. She reckoned its the best place in Africa for tourists. I’ve been Nigeria but its not very touristy. She said you can just walk around as a lost white man and people are cool. Is that true? She reckoned I should go south Africa and it wasn’t so bad. But she said Zambia is good for safari and stuff. She was a good woman who lived in england and carried herself pretty well. Whenever we hung out it was never me just spending money. She still had a home in zambia and collected tortoise. She had a 4×4 and went with her girlfriends to find lions and stuff

  15. Billion? If they can get their economic output up then that debt will be like America’s debt, an imaginary number that means nothing. At least if I properly understand monetary theory.

  16. Soon, China will rule African countries.
    Funny how Africa is the richest Continent in the world but yet we are soooo poor

  17. I’m pretty sure this was always china’s end goal. For Zambia to default so they can now own actual land legally in Africa. Someone prove me wrong.

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