In a significant move to address Zambia’s ongoing debt crisis, the Government of Zambia has entered into a historic bilateral agreement with the Government of France, aimed at restructuring the country’s debt. The agreement follows recommendations laid out in the Memorandum of Understanding (MoU) signed in October 2023 under the G20-Paris Club Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative (DSSI).
The agreement was signed by Zambia’s Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, who represented the Zambian government. On the French side, Mr. William Roos, the Head of Multilateral Affairs at France’s Ministry of Economy, Finance and Industry, signed on behalf of his country. Mr. Roos also serves as Co-Chair of the Paris Club, a group of creditor nations working to address global debt sustainability challenges.
This agreement marks the first successful conclusion under the October 2023 MoU, setting the stage for 15 additional debt restructuring agreements with other creditor nations. These agreements are crucial as Zambia works toward comprehensive debt treatment, which is essential for the country’s broader economic recovery strategy.
A Vital Step for Economic Recovery
Dr. Musokotwane expressed his optimism about the agreement, emphasizing its critical role in addressing Zambia’s debt sustainability issues. He noted that the agreement will provide Zambia with the fiscal space necessary to prioritize essential areas such as economic recovery, social investments, and sustainable development projects. The restructuring is expected to ease Zambia’s financial burden and open avenues for more targeted investments in key sectors.
In his remarks, Dr. Musokotwane extended gratitude to the French Government, the G20, and the Paris Club for their unwavering commitment to helping Zambia navigate its financial challenges. He described the agreement as a testament to the power of international cooperation in tackling the debt issues faced by developing nations, underscoring that Zambia’s financial stability is closely tied to such global partnerships.
France’s Commitment to Equitable Solutions
For his part, Mr. Roos highlighted France’s continued support for Zambia’s debt restructuring efforts, stressing the importance of collaboration between creditor nations and Zambia. He reiterated that the agreement is part of a broader international effort to ensure equitable solutions that would help Zambia regain its economic footing. He was joined at the signing ceremony by France’s Ambassador to Zambia, Mr. Thomas Rosignol, and Mr. Thibaut Dornon, the Head of the Regional Economic Department for Southern Africa.
Looking Ahead: The Road to Debt Relief
This agreement is an essential first step, but much work remains to be done. The remaining 15 agreements under negotiation with other creditors will be pivotal in finalizing the debt restructuring process. Once completed, these agreements will provide Zambia with the necessary tools to address its debt challenges and continue moving forward with its recovery plans.
As the negotiations progress, the Zambian government remains committed to making strategic decisions that will prioritize long-term economic stability, ensuring that the country emerges from this crisis in a position of strength. The commitment of the international community, including France, the G20, and the Paris Club, signals a hopeful path forward for Zambia’s financial future.
