What happens if Zambia defaults on its debt? - BBC Africa

The COVID-19 pandemic has put a financial strain on a lot of countries across the world.

One of those countries is Zambia. The country has had financial issues before Covid-19, but the effects of the pandemic have not made things any easier.

The situation has reached the point where Zambia may default on its debt - essentially failing to pay instalments on bonds issued by the government which are held by banks.

Why is this bad for Zambia, and how could this affect the rest of the continent?

Video by Jameisha Prescod.

[RaeKembabazi]

So rich yet so poor, the irony of Africa

[edema.]

The borrower is a slave to the lender.

[rickjames]

As a Zambian, I am absolutely horrified at the situation. We the people will be taxed immensely for their fiscal indiscipline. I cannot wait for next year August. We will do the right thing.

[kman]

When you don’t value yourselves they will not see value in you either.

[fridayborn]

China is playing chess while Africa is playing checkers.

[mambofornasa]

Kenya is following Zambia at top speed, thing is...I don't think we ever learn our lesson.

[treesashaju]

Your voice is so well balanced and clear 🌸

[thatwakandaboy]

Who else finds the reporter's voice soothing?

[njuguna]

Replace "Zambia" with "Kenya" and this story still accurate af.

[ssebuddeibrahim]

This looks like a chapter out of “The confessions of an economic Hitman”

[gabrielm.lamaswala]

AS a Zambian, I know for a fact that even without COVID, the sitting government would still have defaulted on all existing loans. The country has been unfathomably mismanaged.

[mwansajere]

PAIPA PANO LOL let the government not even lie about corona...they have looted and looted without any foresight and now Zambian citizens have to pay for it

[akwenda]

I'm Zambian and this is so embarrassing because it was just so avoidable

[mikemike]

Better to have a dirt road and no debt than this!

[maureene]

Zambia is do beautiful with its natural attraction. Such a shame

[afrozedd]

As a Zambian myself all i can say is we've gotten to this point because of high levels of corruption..the country is highly in debt but there's no proper explanation to where the money goes so sad

[travelingjohn]

Why does any African nation owe debt after independence is beyond me.

[jizzzoi]

China won’t say no to the extension because they want to own the continent

[mtsitsa]

The lady at 01:37 says the government has built infrastructure such as "malls"... 😂

[alexoh]

Government failure in Africa, so sad.