Zambians pay the price for government’s default as food prices spiral
By
David Whitehouse
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Posted on
April 19, 2021 15:00
The population of Zambia is paying the price for Zambia’s sovereign default – when the government missed a payment on its debt – in November 2020. The most direct impact is in the form of higher food prices.
Overall annual inflation climbed to 22.8% in March from 22.2% in February, driven by food inflation, which jumped to 27.8%.
The higher prices result from a loss of confidence in the kwacha, says Shani Smit, an economist at NKC African Economics in South Africa. Since October, food-price inflation has soared by more than 13%, she notes. “One of the main drivers behind the rise in food price