Last week we heard some big news. Zambia went into debt default, the first country in Africa to do so since the Covid crisis began.  

This won’t come as a shock to some of you – the coronavirus pandemic has hit many countries hard, especially those with pre-existing debt burdens. 

With 88% of the Zambian population earning less than £4.20 a day, and external debt repayments four times higher than health spending, a default may be the only way for Zambia to move out of the crisis. 

We’ve got a new blog outlining how Zambia got here, and what it means for the country's future.

Zambia’s external debt payments have increased substantially over the last few years, from 4% of government revenue in 2014 to a projected 33% in 2020.  By the time the country went into default last week, Zambia had gone through extensive austerity measures to try and reduce its debt. 

With most of Zambia’s debt being owed to private lenders, the recent initiatives by the G20 governments have provided little relief. Unless private lenders are pushed into playing their part, we will see more and more countries struggling during the pandemic.

The global debt and financial system is broken, what happens next is up to world leaders, and it’s up to us make sure they listen.   

We hope you are keeping safe and well during these times. 

All the best  
Zak, Eva, Tim and the JDC Team

PS. In two weeks the Big Give is starting! Any donation made between 1st December through to the 8th December will be doubled - we'll send you more information about that closer to the time.