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Subject

Zambian debt crisis.

Significance

Debt and corruption concerns have resulted in plummeting investor confidence and escalating domestic and international criticism of President Edgar Lungu's Patriotic Front (PF) government. In turn, the PF has accused the opposition United Party of National Development (UPND) of inciting riots.

Impacts

Increased mining taxes could see investment, productivity and revenue decline, further undermining budget targets.

The kwacha could slide further against the US dollar, exacerbating Zambia’s debt burden.

Government arrears with private sector contractors could increasingly go unpaid, while costs for importers may also increase.

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