Zambia public debt rises to $28.9 billion as government pursues fiscal discipline

Zambia’s public debt reached US$28.9 billion at the end of December 2025, as the government continued efforts to balance borrowing with economic recovery under the International Monetary Fund’s Extended Credit Facility programme, Finance and National Planning Minister Situmbeko Musokotwane told Parliament of Zambia on Thursday.

Delivering a statement on the economy and progress under the IMF-supported framework in Parliament, Musokotwane said both external and domestic debt saw modest increases consistent with the government’s financing plans.

The total debt stock includes US$16.1 billion in central government external loans, US$1.4 billion in government-guaranteed external debt, and K253.7 billion in domestic debt.

External debt edged up 0.7%, rising from US$16.04 billion in September to US$16.1 billion in December—a change Musokotwane attributed mainly to disbursements from multilateral partners.

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Domestic debt issued through government securities increased 0.4% to K253.7 billion from K252.8 billion over the same period.

“This was in line with financing requirements for the budget deficit as outlined in the 2025 Annual Borrowing Plan,” Musokotwane said, adding that the trend reflected adherence to programmed borrowing levels.

He also reported gradual stabilisation in the external sector. Preliminary data showed the current account deficit narrowed sharply to US$25.1 million by end-September, compared with US$541.6 million at the end of June.

The goods balance strengthened to US$600 million from US$257.5 million, supported by robust copper exports and improved performance in non-traditional exports.

The minister said the update reflected the government’s continued implementation of reforms under the IMF programme aimed at restoring debt sustainability, enforcing fiscal discipline and supporting long-term economic growth.

Musokotwane reaffirmed the administration’s commitment to prudent debt management and macroeconomic stability as recovery efforts advance.

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