Yellen in Zambia to discuss debt to China, public health
LUSAKA, Zambia (AP) — U.S. Treasury Secretary Janet Yellen is in Zambia on the second leg of her African tour, a stop aimed at promoting American investment and ties while she's in a capital city that is visibly dominated by Chinese dollars.
Yellen arrived via the renovated Kenneth Kaunda International Airport, which expanded in 2015 with Chinese financing, and drove past billboards and newly built firms bearing Chinese signage, evidence of Beijing's influence and increasing competition with the U.S.
But the growth that the country has experienced has come with a heavier debt burden. Zambia became Africa’s first pandemic-era sovereign to default when it failed to make a $42.5 million bond payment in November 2020. Negotiations over how to deal with the debt load have been ongoing.
How Zambia's debt is renegotiated with the Chinese will provide a test case for how lenient China will be with other overextended nations that face debt distress.
Debt will be a topic of conversation Monday when Yellen meets with Zambia’s president and finance minister to push for the Chinese to continue negotiations. She will also tour pharmaceutical manufacturing facilities benefiting from American investment to showcase what she sees as a model of succeess.
“Many African countries are now plagued by piling, unsustainable debt. And that’s undeniably a problem. And much of it is related to Chinese investments in Africa,” Yellen said Saturday in an interview with The Associated Press in Senegal, the first leg of her African trip.
Still, Yellen insists her trip is not about competition with China.
“We want to deepen our engagement,” she said “We see a rapidly growing young population that needs opportunities and economic growth.”
“We have many government programs and international programs...