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$27 billion – World Bank reveals true scale of Zambia’s debt

ZAMBIA has a gigantic external debt of 27 billion US dollars (US$), according to the World Bank.

In the recently released International Debt Statistics report, the World Bank reveals Zambia’s actual External Debt as US$27bn as of 2019. Combined with local debt and arrears, this would total $33bn.

Shockingly, Zambia’s debt trap and debt related ratios are now significantly worse than neighbouring Zimbabwe, a bad indicator for what lies ahead for the Zambian economy.

What does this mean?

Experts say, based on the current debt position, even assuming a 5% growth rate, no further borrowing, and setting aside 20% of domestic revenues aside each year, it would take Zambia almost 50 years to settle all this debt.

See the full report here:

https://openknowledge.worldbank.org/handle/10986/34588

On October 12th, we published a story examining how part of the money from the debt has been used/misused:

Zambia’s debt: Where did the money go?

 

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