Zambia is facing a delicate balance between economic recovery and political stability, as President Hakainde Hichilema contends with growing opposition pressure while negotiating crucial debt restructuring agreements.
Debt restructuring challenges
The country defaulted on its sovereign debt in 2020, becoming the first African nation to do so during the pandemic. Since then, the government has worked with international creditors and the IMF on a restructuring package, with mixed progress. While agreements with some lenders have been reached, negotiations with private bondholders remain complex, keeping investor sentiment cautious.
Opposition voices grow louder
Hichilema, elected in 2021 on promises of reform and anti-corruption, is now facing criticism from opposition parties accusing him of tightening control over political space. Restrictions on rallies and ongoing prosecutions of opposition leaders have raised questions over democratic freedoms. These tensions have intensified in recent months, as economic difficulties weigh heavily on households.
Economic pressures remain
Inflation has stabilised compared to its pandemic-era highs, but food and energy costs continue to put pressure on living standards. The kwacha has struggled against the US dollar, reflecting both domestic challenges and global currency dynamics. The agriculture and mining sectors remain critical to Zambia’s growth outlook, though copper exports have been volatile.
Investor outlook uncertain
International observers argue that Zambia’s success in stabilising its economy will depend on its ability to strike a balance between reform, debt restructuring and maintaining a credible democratic framework. While the country retains strong resource potential, political turbulence could weigh on investor confidence at a time when capital inflows are vital.
Newshub Editorial, 16 September 2025
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