Zambia’s President Hakainde Hichilema has pledged to improve the country’s financial situation after it received a $1.3 billion bailout from the International Monetary Fund.
Zambia was the first African country to default on its debt in the COVID-19 era.
President Hakainde Hichilema, speaking Thursday at the launch of plans aimed at boosting the country’s socioeconomic development, said the IMF Executive Board had approved a financial assistance program for Zambia.
“They approved our extended credit facility for this great country whose greatness lies ahead of us and for us to make our country greater we have to do what is necessary in all the spheres and in all the areas,” said Hichilema.
The $1.3 billion bailout is aimed at kickstarting the country’s economy and restructuring its debt. The plan allows Zambia to immediately access $185 million.
The financial assistance approved on Wednesday will give Zambia room in the budget to increase social spending and strengthen governance. The framework of the bailout will require the country to improve its public financial management.
