South Africa Offers to Co-Chair Zambia’s Creditor Committee

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The finance ministry said that South Africa and France were interested in co-chairing the committee.

The finance ministry said that France made a request to Africa in January.

After becoming the first African nation to default in the era of the Pandemic era in 2020, it is seeking to restructure as much as $17.3 billion of external debt. The formation of a creditor committee has slowed progress in the plan to restructure the debts and secure a crucial deal with the International Monetary Fund.

The secretariat of the Paris Club, a group of rich countries set up to help rehabilitate debts of poorer nations, is hosted by the European nation of France. China and South Africa are not a full member of the group. According to the finance ministry, the country owes $475 million to two South African state-owned banks.

South Africa's finance ministry said that there is yet to be a committee in Zambia. Once China formally informs the Paris Club of its intention to co-chair the committee, South Africa will be informed officially of its role.

The finance ministry said that South Africa has a strong economic and political relationship with the Zambian government, which makes it a good broker between the borrowers and their debts.

With assistance from Monique Vanek.