As Zambia grapples with an ongoing energy crisis, small farmers and businesses are facing severe struggles exacerbated by rolling blackouts and financial debt linked to significant foreign loans, particularly from Chinese lenders. Kanangwa Newlove, a farmer on the outskirts of Lusaka, has felt the impact firsthand. On her 10-acre farm, she has experienced crop failures due to a lack of electricity needed to operate borehole pumps for irrigation. “There was no water for the crops because there was no electricity,” Newlove said, describing how she uprooted and discarded her wilting organic vegetables.
Since March 2024, Zambia has been plagued by rolling blackouts, a consequence of “load shedding” implemented by ZESCO, the state-owned utility. Newlove reported having only four hours of electricity per day, making it impossible to manage her farm properly. “Without electricity, I couldn’t refrigerate the few meager vegetables I could harvest,” she explained. As heat and drought conditions worsened, Newlove was forced to reduce her farming area and even contemplated shutting down her business, which she has operated for over a decade.
The energy crisis is part of a more extensive economic issue in Zambia, where approximately 60% of the population lives in poverty. The country relies heavily on hydropower, and a severe drought in 2024 depleted water reserves, pushing ZESCO to ration electricity. Compounding the issue, ZESCO is financially strained, burdened by approximately $285 million in loans from the Industrial and Commercial Bank of China (ICBC) and additional debts from other Chinese creditors.
Documents from an investigative collaboration involving the International Consortium of Investigative Journalists (ICIJ) reveal how Chinese lenders tightened their grip on Zambia’s finances. These institutions have reportedly pursued aggressive collection tactics as the nation struggles to repay loans that far exceed its capacity to service. As Zambia is the first country in Africa to default on its sovereign debt during the COVID-19 pandemic, the situation reflects a deepening financial crisis.
The country’s borrowing spree began in 2011, when Zambia was emerging from debt relief programs and sought to finance infrastructure projects. Chinese investments surged following President Xi Jinping’s announcement of the Belt and Road Initiative in 2013. Throughout the 2010s, the state accumulated significant loans linked to various Chinese companies, often without competitive bids. Critics have pointed to a lack of planning as the country found itself trapped in an unsustainable debt cycle, with many projects failing to meet the needs of local development.
By 2019, Zambia’s debt trouble escalated, with the kwacha depreciating, inflation rising, and essential public services strained. The impact has been devastating for businesses like that of Gerald Soko, who opened a butcher shop in 2011. With rising costs caused by prolonged load shedding, Soko’s sales have plummeted, forcing him to halt expansion plans. “There is no profit,” he stated, lamenting not only reduced customer turnout but also thefts that occurred during power outages.
The Zambian government is currently restructuring its debt, attempting to negotiate terms with Chinese lenders such as ICBC amid a complex environment of financial obligations. In recent talks, a shift seems to be occurring with creditors, including China’s willingness to co-chair an official creditors’ committee. As negotiations progress, the resilience of ordinary Zambians continues to be tested by a confluence of economic and environmental crises.
Looking forward, the government is faced with critical decisions regarding financial management, infrastructure development, and energy sustainability. Newlove’s farm is now operational again, and she is adapting her approach by implementing solar energy, but she remains acutely aware of the precariousness of the current situation. “Our resilience was tested,” she commented, recalling how close she came to losing her business. “I knew a lot of farmers who shut down or changed business. They were very lucrative, and I thought, ‘We’re next.’”
