US Treasury Secretary Janet Yellen said restructuring Zambia's debt was a top priority as she visited the debt-ridden African country on Monday.
"I consider the timely finalization of the debt treatment for Zambia to be a top priority for the Treasury Department," Yellen said as she met Zambia's Finance Minister Situmbeko Musokotwane in Lusaka.
"We will continue to press for all critical bilateral and private sector creditors to meaningfully participate in debt relief for Zambia, especially China."
Yellen also met with President Hakainde Hichilema, a businessman turned politician, who swept to power in 2021 on promises to revive the economy.
"It is our view that timely and comprehensive debt treatment can serve the interests of both debtors and creditors," she told the president.
Hichilema said he was hoping the debt restructuring could be completed in the next couple of months.
"Zambians have a deadline. We believe it should be resolved by March. As long as we don't resolve this issue, it will distort the gains we have made so far," he said.
U.S. Treasury Secretary Janet Yellen said Zambia's debt overhang was a drag on its whole economy and that China had been a barrier to reaching a resolution on the southern African country's debt problem.
"I specifically raised the issue with Zambia (with Chinese officials) and asked for their cooperation in trying to reach a speedy resolution. And our talks were constructive," Yellen said.
She told Zambian Finance Minister Situmbeko Musokotwane that the timely finalization of Zambia's debt treatment was a top priority for the US Treasury.
"We will continue to press for all official bilateral and private sector creditors to meaningfully participate in debt relief for Zambia, especially China," she said.
Yellen said she was keen to continue talks with Musokotwane and other Zambian officials about the country's "impressive progress" on economic reforms, and how regional economic integration and deepening trade ties could support the country's growth.
She said it was also critically important for Zambia to address corruption and human rights, and create a business environment that would promote investments and trade.
Zambia defaulted on its sovereign debt in 2020, becoming the first African country to do so during the COVID-19 pandemic.
In August last year it won IMF approval for a $1.3 billion, three-year loan program intended to help ease pressure on its public finances while it conducts $13 billion restructuring discussions.
Yellen is on a three-country visit to Africa. In Senegal she said Russia's war in Ukraine was hitting Africans particularly hard by exacerbating food insecurity and putting an unnecessary drag on the continent's economy.
