Browsing: Zambian debt

Zambia Consolidated Copper Mines

Through Zambia Consolidated Copper Mines Limited (ZCCM), the Zambian government will assume ownership in Mopani Copper Mines with a 73% stake. ZCCM takes over from Switzerland based Glencore mining company. The agreement entails the Zambian government, through ZCCM, taking over $1.5 billion in debt.  

The deal further adds to an already cumbersome debt crisis. Zambia has already defaulted on debt obligations. A worsening debt crisis coupled with a pandemic has led the country to a precarious debt situation. The country became the first African nation to default on debt in the pandemic period, stoking fears that there could be a ripple effect of defaults across the continent. 

As part of the agreement, ZCCM will pay Glencore creditors from Mopani Mine’s revenue. Initially, a payout of 3% of income will be paid up to 2023. After which revenue payouts will rise to 10 -17.5%. 

The deal also stipulates a quarterly interest