Zambia's sovereign default

Zambia's government debt had climbed from under 25% of gross national income in 2013 to roughly 168% by 2020, driven by heavy borrowing for infrastructure projects, much of it financed externally including through Chinese loans, even as the country remained heavily dependent on copper exports for foreign-currency earnings. The COVID-19 pandemic delivered a severe additional shock, disrupting global supply chains, depressing copper demand and prices, and further straining government revenue at the worst possible time. Unable to meet a $42.5 million eurobond interest payment, Zambia formally defaulted on November 13, 2020, becoming the first African nation to default on its sovereign debt during the pandemic era. By the end of that year, the kwacha had lost more than half its value against the dollar and annual inflation had reached nearly 16%. Zambia applied in February 2021 to restructure its debt under the G20's new Common Framework mechanism, and the IMF approved a $1.3 billion support program in August 2022 to help stabilize the economy, though the restructuring process itself dragged on for years afterward.