Zambia's President Edgar Lungu has requested debt relief and cancellation from China due to the economic impact of the coronavirus pandemic, his office said.“President Lungu called for debt relief and cancellation in light of reduced revenue due to the negative impact of the pandemic, as well as competing needs for the country, to secure adequate resources to fight the pandemic and to stimulate the economy,” the presidency said in a statement released late Monday.
“Chinese project finance loans to Zambia amount to between $6bn and $9bn, based on unofficial sources,” said Robert Besseling, director of risk assessment firm EXX Africa. A $2bn hydro power station bankrolled by the government and foreign financial institutions was supposed to go on stream in 2020 after construction started in 2015, but was put on hold after failure to acquire additional funding, according to Besseling.