ZAMBIA’S PUBLIC DEBT HITS US$28.9 BILLION

ZAMBIA’S PUBLIC DEBT HITS US$28.9 BILLION

By Cecilia Chiluba

Minister of Finance and National Planning has disclosed that Zambia’s total public sector debt stood at US$28.9 billion as at end-December 2025.

Dr. Situmbeko Musokotwane told Parliament in a ministerial statement that Central Government’s external debt amounted to US$16.1 billion, with an additional US$1.4 billion in government-guaranteed external debt.

He further revealed that the stock of domestic debt contracted through the issuance of Government securities increased marginally by 0.4 percent, rising from K252.8 billion in September ,2025 to K253.7 billion as at end of 2025.

“This upward trend was consistent with the programmed financing requirements for the budget deficit, as approved in the 2025 Annual Borrowing Plan,” Dr. Musokotwane explained.

On external debt, the Finance Minister noted a slight surge of 0.7 percent from September 2025, primarily due to disbursements from multilateral partners.

Dr. Musokotwane also highlighted improvements in Zambia’s Balance of Payments, indicating a narrowing current account deficit.

“Preliminary data indicates that the current account deficit narrowed to US$ 25.1 million, from a deficit of US$ 541.6 million as at end-June 2025.”

“This was driven by a stronger balance on goods, which rose to US$ 600 million from US$257.5 million in June 2025, supported by robust exports of copper and non-traditional exports,” he said.

The minister reiterated that gross foreign reserves rose to US$5.5 billion at the end of December, up from US$5.2 billion in September 2025, providing 5.2 months of import cover.

He attributed the build-up in reserves to disbursements under the International Monetary Fund (IMF) Extended Credit Facility (ECF) arrangement, project receipts, net statutory reserve deposits, Bank of Zambia purchases, and interest deposits.

Dr. Musokotwane noted that these developments reflect the government’s efforts to maintain fiscal and external sustainability.

He also observed that debt restructuring which currently stands at 94% has created the much-needed fiscal space for the implementation of developmental programmes.

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