Zambia introduced strict economic changes in order to complete the HIPC initiative in April 2005 and is now hoping to shrink its foreign debt from about $7 billion to just $502 million after all the debts are written off in this initiative.

Debts owed by the world's poorest countries, including Madagascar, Tanzania and Mozambique and totaling $3.3 billion will be cancelled by the IMF. Zambia is one of 38 poor countries who can expect the cancellation of all debts to richer G8 countries.

Zambia is now able to boost the budget on important poverty reducing projects and the local currency, Kwacha, is gaining strength due to better credit ratings and confidence from financial backers. Copper production is also on the increase due to an important increase in demand by China and India, which has consequently generated a major influx of foreign currency.