Economist, Haabazoka, calls for coordinated action to resolve Zambia, Ghana debt impasse

Economist, Lubinda Haabazoka, has called for coordinated and practical steps to resolve the ongoing debt restructuring impasse affecting Zambia and Ghana.

The deadlock, involving key African financial institutions—the Eastern and Southern African Trade and Development Bank (TDB) and the African Export-Import Bank (Afreximbank)—threatens to prolong the two countries’ sovereign default.

The dispute centers on demands by the Paris Club group of official creditors to include debts owed to these African multilateral lenders in the restructuring process.

However, TDB and Afreximbank have resisted, with Afreximbank arguing that its founding treaty, ratified by both Zambia and Ghana, prohibits such debt restructuring.

In response, Haabazoka emphasized the need for a unified, African-led approach to resolve the issue, proposing practical, coordinated measures to move negotiations forward.

He suggested the establishment of a formal platform for dialogue with African multilateral lenders. “Afreximbank and TDB must be brought to the centre of restructuring negotiations—not sidelined,” Haabazoka said.

“The creation of an African Multilateral Creditors Roundtable, formally recognized by the IMF and World Bank, would foster transparency, build trust, and enable compromise without jeopardizing the financial health of these institutions,” he added.

Haabazoka also urged Zambia to work closely with peer nations like Ghana and Ethiopia, which are also restructuring debts under the Common Framework or facing similar creditor tensions.

“A united voice among African debtor nations could increase pressure on global financial institutions and creditor coalitions to acknowledge the constraints faced by African development banks and work toward balanced solutions,” he said.

Additionally, Haabazoka proposed flexible restructuring options such as maturity extensions, interest deferrals, and concessional refinancing mechanisms, which could ease immediate fiscal pressures while preserving the financial integrity of African lenders.

He further called for clarity on the status of African development banks within global debt frameworks, urging the IMF, G20, and Paris Club to formalize the criteria for preferred creditor status.

“The current ambiguity leaves countries like Zambia trapped in drawn-out political negotiations without clear guidelines. This should include formal recognition of the essential role African multilaterals play in financing development when others hesitate,” Haabazoka said.

Haabazoka’s remarks may come as Zambia continues to grapple with protracted debt restructuring talks, which are seen as critical to unlocking fresh financial support and restoring macroeconomic stability.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.