Zambia has joined the list of African countries who have reached out to China in a request for debt relief. The pandemic-induced reduction in activity has hit commodity export countries like Zambia hard, and those with significant debt obligations even harder. 65.8%(Dec,2019) of Zambia’s external debt is said to be owed to China – a great example of China’s financial grip on several African countries.
Nonetheless, like other African countries Zambia is investing heavily in digitalizing its economy and Covid-19 will not halt this. The demand for low-cost digital solutions, especially in infrastructure, remains very high and is now combined with a serious lack of funding on the continent. This has opened a gap for tech-savvy investors who are keen to invest in companies which build these tools at a lowered valuation.