Consider Zambia, and a tale of great potential being crushed by the millstone of debt. Until recently, this southern African country with a population of 19 million had for three decades been (for the most part) a functional multiethnic, multi-party democracy. With its wealth of raw materials and its booming capital, Lusaka, it long looked set to be one of the more successful states of Sub-Saharan Africa. But reckless borrowing, combined with the economic fallout of the COVID-19 pandemic, saw Zambia default on its debt in November 2020. The cost of essentials such as food, energy, and transportation soared; businesses laid off workers; public-sector salary payments were delayed. The country has been in economic limbo ever since.
As of this article’s publication, the Zambian government is reportedly—at long last—on the verge of a restructuring agreement with its bilateral creditors. Whereas Silicon Valley Bank was bailed out in three days, Zambia has waited almost three years.