12/06/2026
HOW DID WE GET HERE AS A COUNTRY?
In November 2020, our Country made a global history by becoming the first African nation in the pandemic era to default on its sovereign debt. Crippled by years of over-borrowing, vulnerable copper prices, and the economic shocks of COVID-19, total public debt skyrocketed, pushing the country’s debt-to-GDP ratio to approximately 140%. A country that had been considered one of the most promising economies in Africa at independence. A country sitting on some of the richest mineral deposits on the continent. A country whose founding cabinet included some of the finest educated minds post-colonial Africa had ever produced and I kept asking myself why we where never really taught about them, but I understood, I hope you do too.
I just hate the fact that, we are not really taught about our roots in school, I have known the whole history of Russia in less than 2years, this is because they believe and understand that a country can only develop and grow if it goes back to the roots, to see what mistakes where made by the founding fathers, that’s why they richly teach it in both primary, secondary and university regardless of whatever program, be it engineering you learn history, be it mathematics you still learn it, any field they teach it. I hope our future generations will have an opportunity to learn about our history fully both in primary, secondary and university or college but anyway sit with me for a moment because this is going to be long. But I genuinely believe that understanding where we came from is one of the most important things any young Zambian can do right now. I feel if we can know about the past we can be intelligent about the future.
LET US GO BACK TO 1944.
In July 1944 the United States invited its allies to Bretton Woods, New Hampshire to discuss how to manage the structural crisis that had contributed to the Second World War. 730 delegates from 44 allied nations attended. The entire African continent was still largely under colonial rule at this point. Only three African nations were represented, it is stated that those countries where Egypt, Ethiopia and Liberia.
John Maynard Keynes of Britain's Treasury Department and Harry Dexter White of the United States arrived at that meeting with two plans already drafted and already written. Those two plans were tabled and formed the basis for what became the International Monetary Fund and the World Bank. The other participants according to the historical record were largely onlookers.
The institutions that would govern global finance for the next century were designed at a table where Africa had virtually no seat. And the countries that were designed at that table had already decided what those institutions would do before anyone else arrived.
This matters bane because those same institutions, the IMF and the World Bank, would later become the most significant external forces shaping our country's economic story.
Fast forward, On the 24th of October 1964, after 76 years of British colonial rule, I bet you reading this didn’t even know that we were under colonial for 76 years now ask yourself before that, what was Zambia like? Let me not make you overthink let’s continue so independence was granted to the new Republic of Zambia. Princess Royal represented Queen Elizabeth at the ceremonies. President Kenneth Kaunda told the nation on that day that there must be no color in reverse in independent Zambia. He said our country can give a home to anyone who wants to live in it, whatever their race, as long as they accept that the majority must rule and that all people are born equal.
Those were powerful words from a powerful man at a powerful moment.
And on paper our country had every reason to be optimistic. At independence we had one of the most promising economies in Africa. Abundant land, water, minerals and natural resources. And our founding cabinet was not made up of ordinary men. Mainza Chona was a UK-trained barrister. Arthur Wina had formal training in economics and public administration. Ruben Kamanga drew strength from grassroots activism. Grey Zulu brought party organizational and administrative experience. These were the best of the best of their generation.
But underneath all that promise was a vulnerability that would take decades to fully expose itself.
Our economy was highly undiversified and heavily dependent on a single commodity and that was copper.
Copper prices were high at that time. Export revenues were strong. The new government under Kaunda's philosophy of Humanism, a quasi-socialist ideology aimed at reducing colonial era inequalities and building national capacity in education, healthcare and infrastructure, pursued an ambitious program of state-led development.
Our country also took a position as a frontline state in the African liberation struggle. Under Kaunda the country provided material, logistical and diplomatic support to liberation movements operating in Zimbabwe, Namibia, Angola and South Africa. This was a genuinely brave and principled stance. It positioned our country as a key actor in the broader African liberation project. But it came at a high economic cost.
To sustain its multiple responsibilities, our government increasingly turned to external borrowing during the late 1960s and early 1970s. With copper prices high and export revenues strong, borrowing seemed rational at the time. The logic was that you borrow to accelerate development and the revenues will cover the repayments.
Based on that logic the state borrowed and invested heavily in what became known as parastats in other words, state-owned companies. Industrial projects. Social services. The vision was economic sovereignty and self-reliance. Using the nation's own resources to build the nation's own future.
THE MULUNGUSHI AND MATERO REFORMS.
In 1968 Kaunda announced what became known as the Mulungushi Reforms. A series of tough economic policies aimed at Zambianizing the economy by nationalizing key foreign-owned firms. Through the Industrial Development Corporation, known as INDECO, the government acquired 51% or more shares in roughly 24 to 26 major companies. The goal was to reduce foreign dependency and ensure that a greater share of national wealth remained in Zambian hands.
And honestly the motivation was understandable. Before these reforms our country's post-independence economy was overwhelmingly dominated by foreign interests. The major copper mines were controlled by the Anglo-American Corporation and the American-owned Rhodesia Selection Trust. Banking and finance were in foreign hands through institutions like Barclays, Standard Chartered and Grindlays. By 1968 only a small share of bank credit was reaching Zambians while most continued to serve foreign-owned businesses. I like to say we were independent in name but economically we remained very much a colony.
The Mulungushi Reforms were followed in 1969 by the Matero Reforms, announced on August 11th. This was the decisive second wave of nationalization that targeted the copper industry directly. The government acquired a 51% controlling stake in both the Anglo-American and the Rhodesia Selection Trust operations. Their activities were reorganized into two state-controlled entities. Nchanga Consolidated Copper Mines, formerly under Anglo-American. And Roan Consolidated Mines, previously owned by RST. Most significantly, mineral rights were transferred to the state, replacing the perpetual rights previously held by private companies with time-bound leases. For the first time our country actually owned its own ground.
In 1970 a third wave of reforms targeted banking and insurance. This was only partially successful. Large banks like Barclays and Standard Chartered successfully resisted the full 51% takeover although they were forced to incorporate locally.
At its peak, the state holding company ZIMCO had grown into one of the largest conglomerates in sub-Saharan Africa, accounting for roughly 80% of the national economy. The entire productive base of our country was essentially in state hands.
THE CRADLE TO GRAVE SYSTEM OR CORPORATE PATERNALISM.
And from that control came something that was genuinely impressive in its ambition. The ZIMCO cradle-to-grave welfare system or CP. One of the most ambitious welfare models in post-independence Africa.
Through ZIMCO and its subsidiaries, especially in the mining sector, employees received free or heavily subsidized housing. Access to company-run hospitals and clinics. Schooling for their children and scholarships for further training. Cheap mealie meal. Pensions. Even funeral support. On the Copperbelt in particular, a job in the mines was not just employment. It was an entire way of life.
In the short term this delivered real gains. A disciplined and loyal workforce. Real social improvements in communities that colonial rule had left behind. Healthcare, education and housing that reached people who had never had access to any of it.
But the entire system rested on one dangerous assumption. That copper revenues would remain strong enough to sustain it indefinitely.
In 1975 global copper prices collapsed. And with them went the financial foundation of everything our country had built.
With no diversified industrial base, with no financial cushion that had been built during the good years, our country faced a severe and sudden loss of revenue. The state enterprises that had been established could not sustain themselves. The cradle-to-grave social commitments that had been made to hundreds of thousands of workers and their families could not be reversed without devastating political consequences. And the government faced an impossible choice between financial reality and social stability so it chose to borrow and then to borrow more to service the first borrowing. Every time a country borrows money it multiplies the burden of paying back. And soon you are no longer controlling the debt. The debt is controlling you.
The IMF became a recurring presence in our economic life during this period. And the conditions attached to IMF support required our government to make changes that had immediate and painful consequences for ordinary people. The most explosive of these was the removal of subsidies on mealie meal, our country's staple food.
In December 1986 the sharp rise in mealie meal prices triggered riots across the Copperbelt. Several people were killed. The government reversed course and restored the subsidy even as the wider economy continued to collapse.
By 1990 another increase in mealie meal prices sparked even larger riots in Lusaka. A small group of soldiers attempted a coup. The social contract that had sustained Kaunda's government since the Mulungushi era had broken down completely.
In 1991 multi-party elections were held. Kaunda was decisively defeated by Frederick Chiluba and the Movement for Multi-Party Democracy. There was jubilation.
THE CHILUBA ERA AND THE GREAT SELL-OFF.
Chiluba's government inherited a desperate situation. Hundreds of state-owned parastatal companies were losing money every single day. The government lacked the capacity to resuscitate them. Under enormous pressure from the IMF and the World Bank, Chiluba and the MMD launched what became one of the fastest and most controversial privatization programs in modern history.
More than 250 state enterprises were sold in just 6 years between 1992 and 1998. Companies in transport, retail, manufacturing and brewing. Everything the state had spent decades building was sold off at speed under conditions that were described by Transparency International, the organization that monitors corruption worldwide, as a looting exercise.
But the most controversial sale of all was ZCCM. The Zambia Consolidated Copper Mines. The asset that had been the entire foundation of our country's revenue for three decades.
Here is what actually happened according to historical records.
ZCCM was split into 7 separate units and sold to different investors between 1997 and 2000. The total amount received for all seven units combined was $627 million According to Wikipedia and other sites. For mines that had at their peak produced 700,000 tonnes of copper per year. For mineral rights that had been fought for through the Matero Reforms. For infrastructure that had been built over decades of state investment.
Konkola Copper Mines, described as ZCCM's flagship, was sold to Anglo-American for just $25 million. Anglo-American had previously sat on ZCCM's own board.
Our country's former Finance Minister Edith Nawakwi later said publicly that they were told by advisers who included the IMF and the World Bank that for the next 20 years Zambian copper would not make a profit. But if they privatized they would be able to access debt relief.
Within months of taking ownership the new operators were generating profits that far exceeded what they had paid for the mines.
And our country was left with the debt, the unemployment from the collapsed welfare system, the environmental liabilities and a government whose revenues from copper had been decimated at the exact moment it needed them most.
So when 2020 arrived and our country declared itself bankrupt with debts standing at 140% of GDP it was not a sudden collapse. It was the final accounting of a story that had been building since 1964. A story of a genuinely rich country that was poorly advised, structurally trapped by commodity dependence, pressured into decisions by institutions that did not have our interests at heart and ultimately stripped of the very assets that could have funded a different outcome.
If we do not understand how we got here we will make the same decisions that got us here all over again with different faces and different names but the same outcome.
I will end here.