ZAMBIA has signed a debt restructuring agreement with the Export-Import Bank of India (EXIM India), marking a significant milestone in the country’s ongoing efforts to manage its debt under the G20 Common Framework.
The agreement covers US$320 million owed by the central government and US$15 million by power utility company Zesco.
These amounts have been restructured on favourable terms, in line with the memorandum of understanding reached under the G20 framework.
Finance and National Planning Minister Dr Situmbeko Musokotwane, said the restructured terms are designed to ease the country’s debt servicing burden and redirect resources towards critical sectors such as healthcare, education, infrastructure and initiatives aimed at boosting economic growth.
Speaking at the signing ceremony in Lusaka yesterday, Dr Musokotwane reaffirmed the government’s commitment to prudent economic management.
“Government remains committed to implementing sound economic policies that balance growth with fiscal responsibility,” he said.
He noted that the agreements cover key infrastructure projects, including the Lusaka Decongestion Project, the Itezhi-Tezhi Power Project, and the prefabricated health posts initiative – all of which have made significant contributions to national development.
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Dr Musokotwane also highlighted the importance of maintaining open, transparent engagement with creditors.
“This event demonstrates Zambia’s success in engaging its creditors in a transparent and collaborative manner,” he said. “EXIM India’s participation in our debt restructuring framework signals a strong vote of confidence in Zambia’s ongoing economic reforms.
I reiterate our Government’s unwavering commitment to honouring our debt obligations and maintaining a transparent, constructive relationship with our creditors.”
The signing adds to the country’s ongoing debt restructuring efforts, following agreements with other bilateral and multilateral creditors under the G20 Common Framework.
