Earlier this month, Zambia agreed to a $1.3 billion loan with the IMF that comes with stringent conditions. That development has sparked conversations elsewhere in Africa about a return to the kinds of IMF-imposed austerity programs seen in the 1980s and 1990s, and what the ramifications of those policies could be for Africans today.
The global economic situation is dire, particularly for low- and middle-income countries. Yet, when it comes to solutions, relatively little thought has gone to the role that might be played by international financial institutions and tools—like debt relief—that could support countries in their fight against inflation.
Zambia has agreed to a $1.3 billion loan with the International Monetary Fund that is intended to bolster the debt-laden country’s macroeconomic stability. But the agreement’s conditions are evoking fears in Zambia and elsewhere across Africa of the debt crises of the 1980s and 1990s, and are likely to be unpopular with Zambians.
The Tokyo International Conference on African Development was held last weekend in Tunis, amid major transformations in international politics since the last conference in 2019. Japan’s efforts to expand its influence in Africa are regarded by many Africans and other observers as a model of international cooperation to be emulated.