Analyst: Zambia Owes More Than Double the $12 Billion to China and Other External Creditors

Zambia owes $27 billion to external creditors rather than the $12 billion figure that is widely circulated in the media, according to Brad Setser’s reading of World Bank data on external debt. Setser, a senior fellow at the Council on Foreign Relations in New York, explained in a six-part Twitter thread that explained why Lusaka owes far more than is reported.

Key Highlights From Brad Setser’s Analysis on Chinese Debt in Africa

  • TRANSPARENCY: “The lack of accurate data is a function of Chinese policy not to be transparent: in almost every country, the same three Chinese institutions (China Exim, CDB and ICBC) account for the bulk of exposure (the Commerce Dept has some zero rate concessional loans).”
  • DSSI MISTAKE: “The World Bank and the G-20 erred in focusing on public and publicly guaranteed debt — when a lot of China’s project finance has been kept off the public balance sheet.”

Read the full analysis on Brad Setser’s Twitter page.

  • Get a daily email packed with the latest news and analysis from Africa, Asia, and across the Global South.
  • Read exclusive insights on the key trends shaping China’s relations across the Global South.
  • Full access to the News Feed that provides daily updates on Chinese engagement in the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2
Uncertainty Roils Minerals Markets
3 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
4 From J-10C to Kaan? Indonesia’s Fighter Jet Deal With Turkey Shocks Chinese Military Fans
5
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
6
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths

You Might Like

Bondholders Reject Zambia’s Request to Delay Repayments Due to Concerns Over How Much Government Owes China

Zambia’s burgeoning debt crisis got a whole lot worse on Friday after a committee representing bondholders rejected the government’s request for a six-month repayment holiday on about $3 billion of ...

Zambia Gets an Unexpected Reprieve From Bondholders, But Serious Concerns About the Country’s Debts to China Persist

Zambia’s private creditors gave the embattled country an additional three weeks to come up with a plan on how to resolve its burgeoning debt crisis. A group of bondholders would have ...

18 Days and Counting Until Zambia’s D-Day (aka Debt Day)

In less than three weeks, a group of Zambian bondholders, mostly in New York and London, will reconvene to vote on whether or not to approve Lusaka’s request for a six-month repayment holiday ...

Zambia Reaches Debt Deferral Agreement With China Development Bank

Zambia’s Secretary to the Treasury Fredson K. Yamba announced that his office has reached a debt restructuring agreement with the China Development Bank on one of its loans. It’s important to note that the statement ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP