Archive · 9 Aug 2025
African Lender Weighs Claiming Insurance on Zambia's Debt
Imagine Zambia owes a lot of money and can't pay it back, so they're trying to make a new plan with their lenders.
One of these lenders, TDB Group, is owed money and might ask for help from their insurance.
This insurance is with a company called Lloyd's of London.
TDB is worried that including trade finance in debt restructuring might cause trade to dry up, because trade finance is usually left out.
This is because the money is used for important things.
TDB also has money lent to Malawi, which is having the same problem as Zambia.
TDB Group is considering claiming insurance on debt owed by Zambia.
Zambia defaulted on around $13 billion of external loans in 2020.
TDB has a total exposure of $872 million to Zambia, with $348 million insured.
The lender is also exposed to Malawi, which is undergoing restructuring.
TDB argues trade finance should be excluded from debt restructuring.
- Who
- TDB Group, Zambia, Lloyd’s of London, Afreximbank.
- What
- TDB Group is considering claiming insurance on Zambian debt due to restructuring.
- When
- Zambia defaulted in 2020.
- Where
- Zambia, Malawi, and Ethiopia are involved; TDB is based in Africa.
- Why
- Zambia is restructuring its debt, and TDB may face losses.
TDB's Perspective
Other Creditors' Perspective
Trade Finance Inclusion
TDB's Perspective
Trade finance should be excluded from sovereign debt restructuring.
Other Creditors' Perspective
Not explicitly stated, but implies disagreement.
- Zambia Debt Restructuring
- Around $13 billion
- TDB Exposure to Zambia
- $872 million
- Insured Amount (Zambia)
- $348 million
- TDB Exposure to Malawi
- $530 million+
- Insured Amount (Malawi)
- $214 million
- TDB exposure to Ethiopia
- $638 million