Once one of the world’s fastest growing economies, Zambia faces some tough choices in a bid to avoid defaulting on its debts. Previously buoyed by rising demand for copper, the world’s seventh largest producer of the commodity has been hit by falling prices and an ill-advised infrastructure spending programme, with debts rising to near-unsustainable levels.
Falling foreign currency reserves, rising inflation and growing discomfort among foreign mining investors have all contributed to this economic unease. And while the Zambian government has so far resisted such a move, observers say the country could be forced into a fresh lending programme with the International Monetary Fund (IMF).