Zambia’s foreign debt grows to USD 3.13bn at end-Sep 2013

By bne IntelliNews October 14, 2013

Zambia’s external debt has increased to USD 3.13bn as of end-September from USD 3.08bn as of end-2012, Zambia Daily Mail reported, quoting Finance Minister Alexander Chikwanda. Just two years ago, before the current Patriotic Front government entered into force, the country’s foreign debt stood at slightly over USD 500mn. In September 2012, Zambia sold a USD 750mn debut 10-year Eurobond with a yield of 5.625% after attracting bids worth more than USD 11bn.

Zambia’s stock of domestic debt has increased by 22.5% so far this year to ZMW 18.52bn (EUR 2.58bn) as of end-September 2013. Chikwanda has explained that the growth in the government’s borrowing is related to its efforts to grow the economy. He has also said that the government would aim to borrow some USD 2bn in 2014 to support growth, of which about 70% would be borrowed from foreign markets.

Zambia is expected to raise a syndicated loan of USD 250mn from a consortium of international and local lenders to fund infrastructure projects this month. The loan will be Zambia's first syndicated facility since 1984. The copper producing country, rated B+ by Fitch and S&P and B1 by Moody’s, may issue another Eurobond at the beginning of 2014 at the earliest.

Chikwanda has said that the budget deficit would surge to 8.5% of GDP for 2013, well above the government’s initial target of 4.5% of GDP due to the abolition of fuel and maize subsidies and the hike in public sector wages. The budget gap should shrink to 6.6% of GDP for 2014. The government targets a GDP growth of above 7% next year, driven mainly by the mining, construction, transport and communication sectors. The International Monetary Fund (IMF) has forecast the country’s economy to expand by 6% this year, slowing from 7.2% in 2012, largely due to lower agricultural production. But an expected growth in copper demand by China would support the economy of Zambia, which is Africa’s biggest copper producer.

Related Articles

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

MTN Nigerian fine raised back to $5.2bn, court refuses to freeze company bank accounts

The record fine, imposed on South Africa-based telecoms group MTN by the Nigerian Communications Commission (NCC) has been raised back to $5.2bn, publications in local media revealed. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss