ZAMBIAN’S EXTERNAL DEBT STOOD AT US$15.43 BILLION IN 2024
….from US$14.6 billion in 2023, with domestic debt decreasing to K229.3 billion from K232.6 billion
Lusaka… Tuesday March 18, 2025 (SMART EAGLES)
Government has disclosed that as at end of 2024, the Central Government Domestic Debt stock decreased to K229.3 billion from K232.6 billion as at the end December 2023 due to change in the issuance method of Government bonds in January 2024 from discount to par value.
Minister of Finance and National Planning Dr. Situmbeko Musokotwane says with regard to the Central Government External Debt stock, as at end December 2024 this stood at US$15.43 billion from US $14.6 billion as at end December 2023.
Dr. Musokotwane told Parliament in a ministerial statement that the increase was on account of continued disbursements to social sector projects largely from multilateral institutions and the various tranches of the International Monetary Fund (IMF) Extended Credit Facility (ECF).
“Notably, under the ECF, the IMF in June 2024 extended an additional SDR 293.46 million (about US $385.7 million) to assist Government address the severe drought that has significantly impacted agriculture and electricity generation, affecting a substantial share of the population,” he told Parliament as monitored by Smart Eagles.
“Madam Speaker, the publicly guaranteed state-owned enterprise external debt at the end of December 2024 stock decreased to US$1.37 billion from US$1.41 billion as at the end December 2023. This was as a result of debt service payments by guaranteed institutions.”
In terms of domestic arrears, Dr. Musokotwane said government has made efforts to reduce them.
He explained that the stock of audited and verified domestic arrears decreased to K77.5 billion as at end-September 2024 from K79.8 billion as at end-June 2024.
“We remain confident the downward trend will continue in the subsequent years due to our strong commitment to clear the arrears in line with the Revised Arrears Clearance Strategy,” he added.
“Debt Restructuring update… Madam Speaker, Zambia has achieved a major milestone in its debt restructuring efforts. Of the US$13.34 Billion, a total of 90 percent has been reached in the Agreement in Principle. Madam Speaker, in the bilateral category, Zambia secured a restructuring agreement in June 2023 for approximately US$6.3 billion, which was formalized through a Memorandum of Understanding (MoU) in October 2023. This MoU established the framework for repayment terms and bilateral agreements. So far, agreements have already been signed with France and Saudi Arabia.”
On the Eurobond front, the Finance Minister said Zambia restructured US$ 3.8 billion in June 2024, obtaining concessions worth US$ 840 million and resuming debt service payments.
“For the commercial creditor category, Zambia has concluded agreements with Paramount, Huawei Technologies, ZTE Corporation and Credit Suisse. Debt service on the aforementioned creditors has resumed. Agreements in Principle (AIPs) have also been reached with other key creditors, such as Nedbank, Investec, Industrial and Commercial Bank of China (ICBC), Bank of China, AVIC, Bank Hapoalim, StarTimes and China Development Bank (CDB).”
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