Zambia is set to host Chinese Premier Li Qiang, marking the first visit by a Chinese premier to the country in 28 years.
The visit comes at a pivotal moment, as Zambia emerges from a financial crisis, with Beijing eager to access the country’s commodities and develop a bigger market for its exporters.
China is Zambia’s largest official creditor with $5.7 billion owed and is eager to highlight countries that are model members of President Xi Jinping’s flagship Belt and Road infrastructure initiative.
Increasing China’s Presence
Li Qiang’s arrival in Lusaka on Wednesday is part of a push to deepen China’s presence in the copper-rich country as Europe and the U.S. vie to become alternative benefactors now that Zambia’s $13.4 billion in debt is on a more sustainable repayment plan.
“Li aims to bolster China’s presence in a strategically vital country where both President Hichilema and Chinese mining firms need support,” said Eric Olander of the China-Global South Project, noting that a February acid spill at a Chinese-run copper plant—now a major election issue—contaminated the Kafue River.
He added that China this year approved a major refurbishment of the Tazara Railway, widely seen as a counter to the U.S./EU-backed Lobito Corridor. China built Tazara in the 1970s to access Zambia’s copper via Tanzania and continues to invest as Western partners expand their own route through Angola and the DRC.
Investment Over Loans
After the COVID-19 pandemic forced many African countries into debt distress, governments across the continent shifted to seeking investment.
One reason Zambia’s debt restructuring dragged on for three-and-a-half years was that it had a large number of Chinese creditors, limiting its leverage, analysts said.
Chinese companies have invested around $6 billion in Zambia over the past 20 years, mostly into the metal sector, according to data from the American Enterprise Institute.
These companies now face increasing pressure from European and American firms. The European Union’s top official for international cooperation and development announced fresh investments in transport, energy, agriculture and critical raw materials along the Lobito Corridor.
Donald Trump Jr., the eldest son of U.S. President Donald Trump, met Hichilema on Sunday, according to a post on the Zambian president’s X account.
(With inputs from Reuters)
