Zambia_s looming debt crisis _ is China to blame?

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CMI INSIGHT 2019:1

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C M I I N S I G HT J U N E 2 0 19

Levy Mwanawasa stadium in Ndola, Zambia, constructed with Chinese funding and completed in 2012. Photo: Arve Ofstad

Zambia’s looming debt crisis – is China to blame? AUTHORS Arve Ofstad

Economist, former ambassador to Zambia and former senior researcher CMI

Elling Tjønneland

Senior Researcher, Chr. Michelsen Institute

Is China pressuring poor countries with debt? Debt trap diplomacy is a recent term that is used to describe Chinese loans for infrastructure and development in developing countries. Zambia is one of the countries where China is the biggest single creditor and a major provider of finance for development. It has borrowed heavily in recent years and is now in high risk of debt distress. However, the Chinese are not the main culprits for the looming debt crisis. This CMI Insight reviews the sources of the Zambian debts, examines how the loans have been used and misused, and asks whether any defaults will result in Chinese takeover of major public assets.


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Zambia_s looming debt crisis _ is China to blame? by CMI Chr. Michelsen Institute - Issuu