By Amos Sikaonga 
By Cecilia Chiluba
Zambian Government and ZESCO Limited have signed a debt restructuring agreement with the Export-Import Bank of India (EXIM INDIA), as part of a broader deal to address its debt burden.
The total outstanding amount being restructured under the Central Government is US$320 million while the total debt being restructured under ZESCO Limited is US$15 million.
Finance and National Planning Minister Dr. Situmbeko Musokotwane said the amounts have been restructured with favorable terms as agreed under the Memorandum of Understanding under the G20 common framework.
Speaking during the signing ceremony in Lusaka, Dr. Musokotwane stated that the terms agreed upon are designed to support Zambia’s recovery, reduce debt servicing pressures.
He revealed that the agreements that have signed cover key infrastructure projects, including the Lusaka congestion project, the Itezhi-tezhi power project, and the prefabricated health posts initiative, which have contributed significantly to national development.
“This event marks a significant milestone in Zambia’s ongoing debt restructuring efforts under the G20 common framework, aimed at restoring debt sustainability and creating fiscal space for national development.”
“This agreement not only reaffirms our strong bilateral ties but also demonstrates our shared commitment to ensuring a sustainable financial future for Zambia,” Dr. Musokotwane stated.
He assured that the Government remains committed to implementing sound economic policies that balance growth with fiscal responsibility.
Dr. Musokotwane expressed gratitude to EXIM India for its continued cooperation and support throughout the debt restructuring process.
“Today’s event also demonstrates Zambia’s success in engaging its creditors in a transparent and collaborative manner. EXIM India’s participation in our debt restructuring framework signals a strong vote of confidence in Zambia’s economic reforms,” he added.
He commended the efforts of the teams from EXIM India, Ministry of Finance, government’s financial and legal advisors, ZESCO Limited, and other stakeholders who have worked tirelessly to ensure the success of the restructuring negotiations.
Cecilia Chiluba