Swap debt for equity in mines – CTPD

NKOMBO KACHEMBA
Lusaka
CENTRE for Trade Policy and Development (CTPD) has urged Government to imploy the debt-equity swap mechanism in resolving its debt crisis.
Zambia’s external debt was estimated at US$14.6 billion in 2023, while domestic debt stood at US$1.9 billion.
According CTPD, debt equity swap is a mechanism in which a bank exchanges foreign sovereign external debt of a country for an equity stake in a company in that country, through privatisation, stock market investments or direct investment.
In a paper released last week, titled ‘A Review of the Challenges and Social-economic Implications of Zambia’s Protracted Debt Restructuring Process’, CTPD suggests Zambia can use its mineral resources to engage in a debt equity swap with its creditors…