Zambia Eurobond Investors See Hichilema Secure IMF Deal by April

  • Hichilema’s victory margin to make policy shift easier: Amundi
  • Size of Zambia’s debt burden a challenge: M&G Investments

Hakainde Hichilema

Photographer: Salim Dawood/AFP/Getty Images

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The landslide victory for Zambian President-elect Hakainde Hichilema may help him make good on his promise to secure a much-needed deal with the International Monetary Fund to reduce debt and boost economic growth.

Zambia’s Eurobonds and currency rallied on Monday after Hichilema beat incumbent Edgar Lungu by almost 1 million votes with nearly 60% support. The massive margin will make it easier to change policy, said Ray Jian, an emerging-market portfolio manager at Amundi Asset Management, which has an overweight position in Zambian debt. The money manager added Zambia’s 8.5% bond due in 2024 as of June 30, according data compiled by Bloomberg.