Zambia’s election winner expected to push for 20 per cent cut in country’s debt to China

Hakainde Hichilema’s landslide victory over President Edgar Lungu may herald a new approach to Chinese investment in the heavily indebted African nation

The victor reined back his criticisms of Beijing’s practices on the trail, but will need its main creditor’s help as he tries to rebuild the economy

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Zambia’s president-elect Hakainde Hichilema. Photo: AFP

Published: 6:00pm, 18 Aug 2021Updated: 6:00pm, 18 Aug 2021

Zambia’s election winner Hakainde Hichilema downplayed the country’s ballooning debts to China on the campaign trail but is likely to push for relief on taking office.

Earlier this year he said a 20 per cent reduction would be a reasonable starting point for negotiations, saying “there has to be a haircut. It has to be equitable.”

However, Hichilema, who has lost five previous elections, did not make the issue of Chinese debt as prominent as in previous campaigns and will need Beijing’s help in restructuring the country’s debt after a recent Eurobond default.

The president-elect – who promised investor-friendly policies, better debt management and “zero tolerance” for corruption – was declared the winner on Monday, beating incumbent Edgar Lungu with more than 60 per cent of the vote.

But he inherits an economy in financial ruins after it became the first African country to default on a debt repayment in the pandemic era. Last year, the country’s GDP contracted by 3 per cent – Zambia’s worst performance in more than a quarter of a century.

Hichilema supporters celebrate his victory in Lusaka. Photo: AFP

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