Zambia is a beautiful country situated in southern Africa. With a population of 19.6 million people, the nation boasts rich cultural heritage and natural resources. In this article, we will take a closer look at some critical aspects that make Zambia an intriguing country.
Debt Default and Economic Struggles
The Covid-19 pandemic further exacerbated Zambia’s ongoing economic struggles, leading to the first African nation’s default on its foreign debt in 2020. China holds a significant share of the debt burden, which makes up one-third of the overall debt. Prior to the pandemic, managing the debt was already a challenge, impacting commodity prices and the entire economy. To recover and unlock the IMF rescue plan, Zambia needs to secure better repayment terms on its external debt, which was valued at $18.6 billion at the end of 2022.
Copper’s Reign and the Mining Sector
Zambia is Africa’s second-largest producer of copper and the world’s seventh-largest producer. However, copper prices have dwindled, and the mining sector‘s exports to China have weakened, leading to a lack of investor confidence. Furthermore, foreign influence in the mining sector has faced a crackdown.
The Chinese Connection
China is Zambia’s leading foreign investor, with a substantial presence in the mining sector and ambitious infrastructure projects. The relationship has not been without tension, however, with occasional accusations of worker exploitation leading to violent incidents such as the 2020 murder of three Chinese textile factory bosses and the 2012 killing of a Chinese manager at a coal mine.
Natural Wonders and Tourist Attractions
One of Zambia’s most famous sites is the beautiful Victoria Falls, known as Mosi-oa-Tunya (the smoke that thunders) in the local language. The falls straddle the border between Zambia and Zimbabwe and attract tourists from both countries who come to witness their stunning beauty.
Political Legacy and Change
Kenneth Kaunda, Zambia’s founding father, led the country to independence from British rule in 1964. He passed away in June 2021 at the age of 97. Kaunda was known as the “African Gandhi” and led a single-party system for 27 years before peacefully relinquishing power. Today, President Hakainde Hichilema, a business tycoon, leads Zambia and has made significant policy changes such as repealing the death sentence and an antiquated law criminalizing defamation of the president.
Zambia is a fascinating country with a rich and complex history and abundant natural resources. As it navigates economic challenges, debt, and foreign investment, Zambia remains a crucial player on the global stage.
