Zambia's eurobond default will not deter appetite for sub-Saharan Africa debt

Zambia was the first African country to default in its debt amid the Covid-19 pandemic, but it is not necessarily a signal of the path its counterparts in the sub-Saharan Africa (SSA) region will take.

Earlier this year, Zambia was unable to pay the interest on one of its eurobonds. Holders of $3 billion of eurobonds also denied any debt relief, Bloomberg previously reported.

In a report issued in September, ratings agency Moody's noted that suspending debt service payments for eurobonds for six months would ease pressures but would not spell the end of its debt-sustainability issues. However, the Zambian government saw it as an opportunity to consider its debt restructuring, a precondition for support from the IMF.