The recent debt restructuring agreement reached by Zambia with its major creditors is expected to have a positive impact on the country's technology ecosystem, which has struggled to attract venture capital. Economists believe that the debt restructuring will rally investors to Zambia's tech ecosystem and spur its growth. The restructuring deal provides increased fiscal space for the government to invest in priority projects, including the technology sector.

Zambia's tech ecosystem has already seen a boost with the entry of several pan-African companies, including Wi-flix, Liquid Intelligent Technologies, VALR, and Chipper Cash. The CEO of Zambia-based investment firm Thebe Investment Management believes that the restructuring will create a more favorable investment environment for all sectors, including technology, as it enables economic growth. Technology is seen as a key enabler for sectors such as mining and agriculture.

The debt restructuring is expected to benefit startups in Zambia by increasing their ability to raise capital from local and international investors. The founder of Ignitos Space, a spacetech startup, sees the restructuring as an opportunity to take the Zambian startup ecosystem to the next level in terms of funding liquidity. Digitalization initiatives resulting from the restructuring could also boost the growth of e-commerce and fintech solutions in the country.

Creating an enabling environment for the success of the tech ecosystem is crucial. The debt restructuring, combined with business-friendly legislation, presents an opportunity to accelerate economic growth and job creation in Zambia through technology investment. Increased capital flows and participation from pension funds are anticipated, making the tech ecosystem an attractive investment asset.

While the debt restructuring is a positive step, there is still work to be done in terms of economic growth and sector identification for strategic growth. Technology is recognized as an important pillar for social and economic development by the Zambian government. However, active efforts are needed to make technology and other sectors work effectively for the country's economic growth.

The debt restructuring agreement is seen as releasing the handbrake on Zambia's economic progress. While it is not a complete solution, it removes a significant obstacle, and the future outcome will depend on the collective efforts of the Zambian people.

Read more on TechCabal