Zambia secures $277 million debt restructuring deal with UK, payments extended to 2043

Zambia has successfully concluded debt restructuring negotiations with the United Kingdom amounting to US$277 million, with repayments now scheduled until 2043. Finance and National Planning Minister, Dr. Situmbeko Musokotwane, announced that Zambia was originally required to pay US$291,297,340.85 by 2032.

Following successful negotiations, the repayment has been reduced and extended to 2043. Speaking during the signing ceremony in Lusaka on Friday, Musokotwane expressed gratitude for the constructive engagement and spirit of cooperation shown throughout the restructuring process. He said the amendment agreement would ease debt service pressures and provide much-needed fiscal space to prioritize critical infrastructure and social investment spending.

“This gathering represents Government’s commitment to strengthened fiscal and debt sustainability, as well as our resolve to consolidate toward a resilient and equitable Zambia macroeconomic environment,” Musokotwane stated. He reaffirmed government’s commitment to honouring its debt obligations and said debt service payments to the United Kingdom would commence in accordance with the terms of the bilateral agreement. “I further reiterate government’s unwavering commitment to maintaining a transparent and constructive relationship with its creditors, and the undertaking of effective debt management operations that support a prosperous and more resilient Zambian economy,” the minister said.

[paywall]

British High Commissioner, Rebecca Terzeon, said economic growth and development laid at the heart of the UK-Zambia partnership and described co-signing the Bilateral Debt Agreement as fulfilling. Terzeon noted that the signing marked a significant step in Zambia’s debt sustainability journey through the G20 Common Framework debt restructuring process. “As the UK Government, we commend you, Hon.

Minister, and your Government for your steady commitment to the debt restructuring process,” she said. She highlighted that Zambia’s transparency and constructive engagement with official creditors and the G20 process were essential to the successful restructuring. The loan from UK Export Finance supported a government project that built 5 district hospitals and 111 mini hospitals across the country.

“I have visited myself the hospitals in Mazabuka and Mambwe, built by NMS International, and seen for myself facilities that are there – and across the country,” Terzeon said. She added that the signed agreement contributed toward creating fiscal space for the government to continue investing in human development, economic resilience, and public services.

[/paywall]