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Zambia defaults, economically and politically Search Polity Note: Search is limited to the most recent 250 articles. To access earlier articles, click Advanced Search and set an earlier date range. To search for a term containing the '&' symbol, click Advanced Search and use the 'search headings' and/or 'in first paragraph' options. With... Clear Search Sponsored by Sponsored by Many African countries are sinking further into unsustainable debt. Last November Zambia epitomised the problem when it defaulted on a US$42.5-million payment on a Eurobond. ‘The government went on a borrowing sp...

Many African countries are sinking further into unsustainable debt. Last November Zambia epitomised the problem when it defaulted on a US$42.5-million payment on a Eurobond. “The government went on a borrowing spree over the last few years and was then unable to repay,” notes Peter Leon, co-chair of the Africa group at the law firm Herbert Smith Freehills. Some of the loans were spent on worthy infrastructures, like roads and hospitals, and some on white elephants. Several might well have lined politicians’ pockets. A sharp drop in the price of copper, Zambia’s main export, and the Co...