On 10 May, Zambian President Hakainde Hichilema flew to Paris to meet Emmanuel Macron and discuss future cooperation between the two countries. Hichilema asked his French counterpart to advocate for a faster restructuring of Zambian debt to the Paris Club of Creditors Committee and the G20. This represents the latest effort by the former Chief Executive Officer of both Coopers Lybrand Zambia and Grant Thornton Zambia to drive Zambia past its debt problems and towards long-overdue social and political reforms. Hichilema said that the country needs to “close this long overdue debt restructuring, put it to bed, and release resources and time and attention to the development side of our agenda.” 

Zambia became the first African nation to default on its financial commitments in 2020 as a result of the COVID-19 pandemic. Before 2020, Zambia had borrowed heavily and owed an estimated $17.3 billion to its creditors. The country’s already fragile economic situation deteriorated as the global pandemic caused a decline in export earnings, remittances, and tourism revenues. As Zambia became unable to pay a coupon on one of its Eurobonds, consequently sparking cross-defaults on its other pending Eurobonds, its credit rating was downgraded to default by major credit rating agencies.

Since then, the Zambian government has attempted to negotiate with its creditors to find a solution to the sovereign debt crisis. In February 2022, Hichilema successfully negotiated a three-year extended credit facility of $1.3 billion with the International Monetary Fund (IMF). This financial package was accompanied by an economic reform plan for Zambia, including measures to stabilise the macroeconomic situation, reinforce the country’s eroded rule of law, and improve debt management. The first tranche of financial help is scheduled to be distributed soon, according to an IMF announcement made on 5 May, and is anticipated to provide the Zambian economy with a much needed boost. At the end of April, Lusaka also sent a debt-restructuring proposal to its government creditors. 

Managing the country’s debt crisis is the first step in Hichilema’s comprehensive plan to reform the country. The Zambian President was elected on a promise to revamp the nation’s healthcare and agriculture systems whilst taking measures to combat entrenched corruption. Hichilema aims to move the copper-rich country past its over-reliance on primary resource extraction and towards a more diversified economy, thereby improving the lives of the 20 million Zambians living in poverty.

The Zambian President is pursuing this ambitious program through a well-designed network of economic partnerships, both with western countries and Chinese investors. The west sees potential in Zambia as a strong democratic ally in Southern Africa. Hichilema’s visit to France demonstrates and further solidifies his commitment to partnering with the west to restructure his country’s debt. Zambia notably signalled its amicability when it voted with the United Nations (UN) against the Russian invasion of Ukraine, contrary to its neighbours Zimbabwe and South Africa, who abstained from the vote. Although some of his critics have accused him of pursuing a neo-colonialist relationship with European powers, Hichilema has emphasised that he is seeking a partnership of mutual interest.

The Zambian President has also engaged with China through balanced diplomacy and has taken a strong but friendly stance to reinforce the great power’s investment in the country. In an interview for the Chinese media channel CGTN, Hichilema stated that “China and Zambia’s working relationship, strategic working relationship is so cardinal to the achievement of our own objectives, our own developmental agenda to better the lives of the people of Zambia. And obviously, we believe this is also mutual.” According to the Chinese, Hichilema had a phone conversation with Chinese President Xi Jinping in May 2022 and decided on the creation of the first China-Zambia investment forum, which was held in September 2022, and brought together state ministries and private companies from both countries. According to Christopher Vandome and Professor Stephen Chan OBE of Chatham House, Hichilema has “displayed regional leadership – demonstrating the merits of ‘positive neutrality’ in pursuing policies that run across global geopolitical divides for the benefit of the national interest.”

Despite having assumed power just over a year ago, Hichilema’s plan has rejoiced international investors. His politics have favoured a climate of confidence and incentivised foreign investment in the country. For instance, the African B2B e-commerce company Wasoko has recently announced a $1 million investment in the creation of a central hub in Lusaka, that it will use as a platform for future expansion into Southern Africa. Its founder, Daniel Yu, justified the choice of Zambia due to its “pro-business government administration keen on expanding the country’s digital economy.” On 11 May, the United Arab Emirates signed a memorandum of understanding to boost tourism to Zambia.

These recent changes could boost the Zambian economy and provide an anchor of stability in Southern Africa; however, the country still faces many challenges. Programs of fiscal consolidation, public expenditure management, and structural reforms can be hard to implement as they require strong state capacity and an efficient administrative system. Zambia’s endemic corruption, reinforced under President Lungu’s term from 2015 to 2021, and the country’s significant reliance on copper exports, which represents an unreliable financial input as commodity prices are highly volatile, could amount to significant obstacles for Hichilema’s ambitious reform program. Zambia’s finance minister, Felix Nkulukusa, recently projected 4.2 per cent GDP growth in 2023 – a decrease compared to last year’s 4.7 per cent. Yet, Hichilema's measures have so far been widely praised for their positive impact on the country's development.