Fitch optimistic Zambia will emerge from debt default

KELVIN KACHINGWE
Lusaka
RATING agency Fitch expects Zambia, the first African country to default during the COVID-19 pandemic in late 2020, to emerge from default on its foreign-currency debt this year.
The United Kingdom-based firm said this in its 2024 Sub-Saharan African Sovereigns Outlook, in which it also singled out Ghana as the other country likely to emerge from default.
Other than Zambia and Ghana, Ethiopia is another African country to default having failed to make a US$33 million coupon payment on its only international government bond last month.
Fitch, in its outlook published on Monday, stated that Zambia and Ghana will come good in terms of restructuring their debts.
“We forecast gradual fiscal consolidation due to financing constraints and fiscal reform efforts, which, in many cases, are linked to IMF (International Monetary Fund) programmes.
This consolidation will help Government debt/GDP to broadly stabilise,” the agency stated… https://enews.daily-mail.co.zm/welcome/home