AFRICAN Development Bank Group (AfDB) President, Akinwumi Adesina, has concluded a two-day official visit to Zambia, where he met with President Hakainde Hichilema to discuss further support for the country’s economic recovery following a successful $6.3bn debt restructuring with bilateral debtors under the G20 Common Framework on debt treatment.
President Hichilema acknowledged the significant progress made in dealing with official creditor debt but stressed that additional efforts were required to address debt owed to local and external commercial creditors, including Eurobond holders. He expressed his determination to unlock growth and prosperity for the Zambian people, stating, ‘We have lost a lot of time under the “python of debt.”’
Adesina congratulated the Zambian government on reaching an agreement with its bilateral creditors under the G20 Common Framework, which he believes will put Zambia back on the path to economic recovery and sustainable debt management. He commended President Hichilema for instilling hope and confidence in the country’s economy, paving the way for investments to return and drive prosperity.
During their meeting at State House in the capital, Lusaka, Adesina outlined several measures to support Zambia’s recovery. These include an initial up to $150 million in budget support pending approval by the Bank’s board of directors, as well as investment projects in key sectors like agriculture, energy, and transport. Adesina assured that the Africa Legal Support Facility (ALSF) would be made available to help Zambia renegotiate the terms of debt with private external creditors.
‘The starting point is to ensure the debt treatment works, and that Zambia does not fall back into a debt crisis,’ stated Adesina. He offered a range of technical and advisory support from the Bank, covering public financial management, public debt management, public investment management, strengthened procurement rules, public-private partnerships, and domestic resource mobilisation.
In addition to the planned budget support, the Bank will help Zambia access another $168 million per year from its non-concessional window. Support will also be extended to access the regional financing window of the African Development Fund (ADF) to finance transformative infrastructure, including energy, road, and rail connections with neighboring countries.
The Bank’s assistance will also focus on reforming Zambia’s farm input support program to be more efficient and transparent, delivered by the private sector, utilizing biometric registration of farmers and electronic vouchers for direct support delivery.
Furthermore, the Bank will support the establishment of Special Agro-Industrial Processing Zones and a Youth Entrepreneurship Investment Bank to foster new financial ecosystems around youth businesses and create jobs. Adesina encouraged the government to optimize infrastructure debt through ‘asset recycling,’ involving the sale of assets to the private sector to free up liquidity for investment in new projects.
President Hichilema expressed gratitude to Adesina for the African Development Bank’s dedication to Africa’s development, stating, ‘Your leadership has raised the bar in terms of the Bank’s status and performance.’
Adesina’s visit also included meetings with private sector leaders, urging them to seize investment opportunities in Zambia.
Praising President Hichilema’s approach to debt resolution and restructuring, Adesina assured Zambia of the Bank’s unwavering support. ‘Zambia is back. Zambia is bankable, and you, Mr. President, you are bankable. You can count on the African Development Bank’s support all the way,’ he affirmed.
Adesina’s visit signifies the African Development Bank’s commitment to supporting Zambia’s efforts towards economic stability and prosperity.
