Zambia and UK Sign Debt Restructuring Deal Under G20 Framework
Zambia and United Kingdom Amend $291 Million Debt Agreement to Support Ongoing Debt Restructuring
The governments of Zambia and the United Kingdom have signed a bilateral amendment agreement on Zambia’s outstanding debt, marking further progress in the country’s ongoing debt restructuring process under the G20 Common Framework for Debt Treatment.
The agreement was signed in Lusaka by Finance and National Planning Minister Situmbeko Musokotwane and the British High Commissioner to Zambia, Rebecca Terzeon.
Officials from Zambia’s Ministry of Finance and representatives from UK Export Finance also attended the signing ceremony.
Under the revised agreement, Zambia’s outstanding debt to the UK has been reduced from $291 million to approximately $277 million, while the final repayment deadline has been extended from 2032 to 2043.
Supporting Zambia’s Debt Recovery Efforts
The amendment forms part of Zambia’s broader debt treatment programme with official bilateral creditors, implemented in line with the principles of the Paris Club.
Government officials say the restructuring will help ease short-term debt servicing pressures while aligning the country’s repayment schedule with its medium-term fiscal and economic reform programme.
Musokotwane said the agreement represents another step toward strengthening Zambia’s fiscal position and restoring long-term debt sustainability.
He added that the revised repayment terms would create additional fiscal space for investment in priority sectors such as infrastructure, healthcare and social development.
Debt Linked to Healthcare Infrastructure
The debt relates to financing provided through UK Export Finance for a major healthcare infrastructure programme in Zambia.
The initiative supported the construction of five district hospitals and 111 mini-hospitals, aimed at expanding access to healthcare services and improving patient care capacity across the country.
Terzeon noted that the project reflects the strong development partnership between Zambia and the United Kingdom, adding that the new facilities have contributed to strengthening the country’s public health system.
Progress Under the G20 Common Framework
The bilateral agreement forms part of Zambia’s wider debt restructuring under the G20 Common Framework, a global initiative designed to help countries address unsustainable debt burdens.
Through the restructuring process, Zambia has now completed agreements covering 100% of its official public external debt, representing a major milestone in efforts to restore financial stability and rebuild investor confidence.
The government has reiterated that future borrowing will follow prudent fiscal policies and will be guided by the Parliament-approved Annual Borrowing Plan, ensuring transparency and alignment with national development priorities.
Officials say the agreement with the United Kingdom signals continued progress in Zambia’s economic reform programme and reinforces the country’s commitment to responsible debt management and international cooperation.
