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The African Development Bank (AfDB) has pledged its commitment to support Zambia’s post debt restructuring process through the Africa Legal Facility (ALF).
Bank President, Akinwumi Adesina, made the pledge during a meeting with President, Hakainde Hichilema, at State House on Tuesday.
Adesina said the Africa Legal Facility (ALF) helps countries to renegotiate their debt obligations by up to 96 percent.
He said the bank was also ready to support Zambia with budget support of between US$100million to US$150 million.
“The Bank is currently working with International Monetary Fund (IMF) and the World Bank (WB) on the debt restructuring process for Zambia,” Adesina said.
He said the bank is looking forward to seeing Zambia access finances through the ADB non-concession window, which could allow the country to access support to the tune of US$168 million per year.
During the same meeting, President Hichilema said the debt restructuring programme was not an end to the country’s economic woes saying government still had to address the domestic debt.
The Head of State said there was need to develop an action plan that will be time bound in resolving the debt problem.
“AfDB offers various innovative support programs which we applaud. We therefore called for a time-bound joint action plan to address these initiatives that once implemented, will help us expand our capacity,” he said.
Hichilema commended the AfDB President for raising the bar of the institution and providing resources to the continent and appreciated the Bank’s advocacy for Africa’s interests, such as addressing the high cost of capital on the global stage.
“Similar to debt, the high cost of capital is like a python constricting our necks, ribs, and legs and unless we address it urgently, it will impede the continent’s development agenda and hinder our joint efforts to improve Africa’s credit profile,” he said.
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