In a significant step forward in Zambia’s ongoing debt restructuring efforts, the government has signed a bilateral agreement with the Export-Import (EXIM) Bank of India to restructure a total of $335 million in debt. The agreement, signed on Wednesday, marks a critical milestone under the G20 Common Framework approach aimed at restoring Zambia’s financial stability.
Finance and National Planning Minister Dr Situmbeko Musokotwane confirmed that the restructured amount includes $320 million owed by the central government and $15 million owed by the state-owned power utility, ZESCO. The agreement is expected to ease Zambia’s debt burden and create fiscal space for sustainable economic growth.
“The signing of this bilateral agreement to restructure the debt between the government of Zambia and the Export-Import Bank of India marks a significant milestone in Zambia’s ongoing debt restructuring efforts under the G20 Common Framework approach,” said Dr Musokotwane. “The $320 million being restructured under the central government includes various infrastructure and development loans, while the $15 million attributed to ZESCO reflects financing for power sector projects.”
The minister emphasized that the debt restructuring will enable Zambia to redirect resources towards development priorities such as education, healthcare, and infrastructure, while also supporting efforts to stabilize the economy and attract new investment.
This agreement with the EXIM Bank of India follows Zambia’s broader commitment to work with bilateral and multilateral creditors in a transparent and coordinated manner. It is part of a comprehensive strategy to address the country’s external debt, which ballooned in recent years due to heavy borrowing and economic shocks.
By engaging its international partners through mechanisms such as the G20 Common Framework, Zambia continues to demonstrate its commitment to prudent fiscal management and long-term economic recovery. The successful restructuring of the $335 million debt also signals growing confidence among international creditors in the country’s reform agenda.
With this new agreement in place, Zambia moves one step closer to achieving its economic recovery targets and rebuilding a resilient, inclusive economy for its citizens.