ZAMBIA AND UNITED KINGDOM SIGN BILATERAL AGREEMENT UNDER THE G20 COMMON FRAMEWORK FOR DEBT TREATMENT
The Government of the Republic of Zambia and the Government of the United Kingdom have signed an Amendment Agreement relating to debt owed to the United Kingdom, marking another milestone in Zambia’s comprehensive debt restructuring process under the G20 Common Framework for Debt Treatment.
The agreement was signed in Lusaka by Finance and National Planning the Minister Dr. SITUMBEKO MUSOKOTWANE, MP, and the British High Commissioner to Zambia, REBECCA TERZEON, in a ceremony attended by officials from the Ministry of Finance and National Planning and representatives from UK Export Finance.
The bilateral amendment agreement forms part of Zambia’s comprehensive debt treatment with official bilateral creditors under the G20 Common Framework For Debt Treatment, implemented in coordination with Paris Club principles. The agreement reflects the constructive cooperation between the Republic of Zambia and the Government of the United Kingdom in restoring long-term public debt sustainability while safeguarding Zambia’s capacity to sustain priority development expenditure.
The original obligation to the United Kingdom amounted to US$291 million, with repayments initially scheduled to conclude in 2032. Consistent with the restructuring parameters agreed with official creditors, the revised terms reduce the outstanding amount to approximately US$277 million and extend the final maturity to 2043, thereby smoothing Zambia’s debt service profile and aligning repayment obligations with the country’s medium-term macroeconomic and fiscal reform programme.
Speaking during the ceremony, Dr. MUSOKOTWANE emphasized that the agreement represents an important step in strengthening Zambia’s fiscal and debt sustainability framework.
The Minister noted that the amendment agreement will ease debt service pressures in the near term and create fiscal space to sustain investments in critical sectors such as infrastructure, healthcare, and social development.
“This milestone reflects the Government’s continued commitment to transparent engagement with creditors and to strengthening the foundations of Zambia’s macroeconomic stability and debt sustainability,” said Dr. MUSOKOTWANE.
The Minister expressed appreciation to KING CHARLES III, the Prime Minister of the United Kingdom, and the British Government for the constructive partnership demonstrated throughout the negotiations. He also commended the technical teams from UK Export Finance, the Ministry of Finance and National Planning, and the respective legal and financial advisors whose collaborative efforts enabled the successful conclusion of the agreement.
Importantly, the debt being restructured relates to financing provided through UK Export Finance that supported a major healthcare infrastructure programme undertaken by the Government of the Republic of Zambia. The programme financed the construction of five district hospitals and 111 mini-hospitals across Zambia to strengthen the country’s healthcare system by expanding access to medical services, increasing patient care capacity, and improving working conditions for healthcare professionals across several provinces.
And British High Commissioner REBECCA TERZEON noted that the hospital infrastructure programme demonstrates the tangible development impact of the partnership between the United Kingdom and Zambia. She highlighted that the facilities have contributed to improving healthcare access and strengthening Zambia’s public health infrastructure.
From a debt management perspective, the agreement forms part of Zambia’s wider restructuring of official bilateral debt under the G20 Common Framework for Debt Treatment. Through this coordinated process with official creditor governments, Zambia has now completed restructuring arrangements covering 100 percent of its official public external debt, representing a critical milestone in the country’s path toward restoring long-term debt sustainability.
The amendment agreement with the United Kingdom aligns Zambia’s repayment obligations with the restructuring parameters agreed under the official creditor framework. This ensures that Zambia’s debt service profile remains consistent with the country’s macroeconomic reform programme while preserving the Government’s capacity to finance development priorities and maintain fiscal stability.
For investors and development partners, the agreement signals continued progress in Zambia’s economic reform journey and reinforces the country’s commitment to cooperative engagement with international creditors, transparent debt management, and policy consistency.
Zambia’s reform programme has focused on restoring macroeconomic stability, strengthening fiscal governance, and rebuilding investor confidence following the successful restructuring of its external debt obligations.
The Zambian Government has reaffirmed that debt service payments to the United Kingdom will proceed in accordance with the revised terms of the bilateral agreement.
Going forward, Zambia will continue to manage public borrowing within the framework of prudent fiscal policy and transparent debt management systems. Borrowing decisions will remain anchored on the Parliamentary-approved Annual Borrowing Plan, which serves as a key governance and accountability mechanism for ensuring that public debt remains sustainable and aligned with national development priorities.
The signing of the Zambia–United Kingdom bilateral amendment agreement therefore represents both progress in Zambia’s debt restructuring journey and a reaffirmation of the country’s commitment to responsible economic management, international cooperation, and long-term economic transformation.
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