situation report

May 21, 2019 | 16:13 GMT

1 min read

Zambia: Government Increases Pressure on Mining Company

What Happened: The Zambian government has reportedly notified Vedanta Resources that it intends to take over its assets in the country, Bloomberg reported May 21.

Why It Matters: Zambia has been experiencing an economic crisis fueled by rising debt, increasing unemployment and an ongoing drought that has hampered its agricultural sector. The Zambian government may be attempting to emulate various policies implemented by the Tanzanian government to extract additional revenue from foreign mining companies operating in the country.

Background: Zambian President Edgar Lungu assumed office in 2015 and has been presiding over costly infrastructure and energy projects that have significantly increased the country's external debt.

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