Brazil recently approved USD90.7m debt relief for Zambia, which represents 80% of the USD113.4m debt owed by Zambia to Brazil as of July 31st, 2011.
This was indicated in a message delivered to Zambia’s Finance Minister Felix Mutati by the Brazilian Ambassador to Zambia Anna Maria Pinto Morales, on November 4th, 2016.
Morales said that Brazil stands ready to strengthen cooperation with Zambia in capacity building in the agricultural sector, as well as school feeding and social cash transfer programs.
Mutati noted that the debt relief pact with Brazil is an affirmation of the good relations between the two countries.
“USD90.7m off our external debt stock is a manifestation of a new beginning in our socio-economic relations and a huge contribution to Zambia’s economic recovery program,” he said.
The Zambian Government officially launched its economic recovery program on October 20th, 2016.
The program is designed to help Zambia restore its GDP growth, currently standing at 3%, which is below the 7% levels required to reduce poverty and to drive Zambia’s development.
The program is dubbed “Zambia Plus” as “all solutions will be determined by Zambians while external partners will form the plus as we engage them to assist in this Zambian process.” Zambia’s Finance Minister Felix Mutati explained at the launch.