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Zambia: Debt restructuring delay raises risks of inflationary feedback loop

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Cash-strapped Africa…

By David Whitehouse

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Posted on April 14, 2023 04:00

Delays in resolving Zambia’s debt restructuring increase the risks of higher inflation triggered by further kwacha depreciation, Sylvia Mwamba, head of the public finance unit at the Zambia Institute of Policy Analysis and Research, tells The Africa Report.

Inflation saw a downward trend in the year to February, but in March the annual rate climbed to 9.9%, prompted by the kwacha’s slide. More delay in debt restructuring poses a “severe threat” of higher Zambian inflation, which could affect the country’s credit ratings, Mwamba says.

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